 Overview
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Laying the groundwork for derivatives trading
started during the mid 1980s with feasibility
studies on the prospects for a local derivatives
market. |
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Going into the 1990s, a full-fledged start
was made with securities industry professionals
and finance ministry officials, forming the
Stock Price Index Futures Establishment Preparation
Committee. |
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The objective was to establish the trading
rules and regulations and to formulate the
basic framework for trading settlements. |
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These endeavors came to fruition with the
enactment of Futures Trading Act (FTA) in
December 1995 and the establishment of Preparatory
Organization for the Korea Futures Exchange
in February 1996. |
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On Korea Stock Exchange, the Korea Stock Price
Index 200 (KOSPI 200) futures was launched
in May 1997. |
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Emboldened by this successful introduction,
the KOSPI 200 options soon followed in July
1997. |
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On another development, the Korea Futures
Exchange (KOFEX) opened in April 1999 in the
city of Busan. |
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Futures and options of financial and commodity
products, barring stock-related derivatives
already traded on the KSE, are now traded
on KOFEX. |
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The derivatives market, which previously was
separated between KSE and KOFEX, became merged
in January 2004, KOSPI 200 futures and options
and other listed stock-related products being
transferred to KOFEX from KSE. |
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On January 27. 2005, the KSE, KOSDAQ, and KOFEX markets were consolidated into
the Korea Exchange(KRX). Now all the derivatives products are traded on the Futures Market
Division of KRX. |
[Developments
in the Derivatives Markets]
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|
| Date |
Development |
May 1992
Aug 1993
Oct 1993
Jun 1994
Mar 1995
Apr 1995
Dec 1995
Feb 1996
Mar 1996
Apr 1996
May 1996
Jul 1996
Feb 1997
Jul 1997
May 1998
Feb 1999
Apr 1999
Jul 1999
Sep 1999
Nov 2000
Jan 2001
Dec 2001
May 2002
Dec 2002
Jan 2004
Jan 2005
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Feasibility studies started for introducing
financial derivatives locally.
Index design for futures and options
started.
Stock Index Futures and Options Market
Organizing Committee formed.System for
trading and clearing/settlement for
futures and options markets commenced;
KOSPI 200 Index published by KSE.
Computer trading system for KOSPI 200
futures completed.
Three-stage trial trading of KOSPI 200
futures started.
Futures Exchange Act passed.
Preparatory Organization for the Korea
Futures Exchange established.
48 brokerages initially permitted to
manage stock index futures business.
Final trial session for trading of KOSPI
200 futures begins.
KOSPI 200 futures officially begin trading
on KSE.
Enactment of the Futures Trading Act.
Three-stage trial trading sessions begin.
KOSPI 200 options officially begin trading
on KSE.
Trading rules of KOFEX established.
Trial trading sessions begin at KOFEX.
KOFEX officially opened.
KOFEX surpasses 10,000 contracts in
daily trading volume.
Government bond futures listed on KOFEX.
Second-stage trial trading of KOSDAQ
50 futures begins.
KOSDAQ 50 futures officially began trading
on KOFEX.
KOSDAQ 50 options began trading on KOFEX.
Treasury bond options began trading
on KOFEX.
MSB interest rate futures began trading
on KOFEX.
KOSPI 200 futures options, individual
stock options, begin trading on KOFEX.
Launch of the consolidated exchange, KRX.
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