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Are Korea`s futures and options markets in really good shape?

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  • Are Korea`s futures and options markets in really good shape?
  • Park, Cheol-Ho
  • Korea Capital Market Institute


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Title Are Korea`s futures and options markets in really good shape?
Similar Titles
Material Type Reports
Author(English)

Park, Cheol-Ho

Publisher

[Seoul]:Korea Capital Market Institute

Date 2011-10
Series Title; No Capital Market Opinion
Pages 5
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Financial Policy
Holding KCMI

Abstract

It has already been 15 years since Korea first introduced the futures and options markets. Korea`s exchange-traded derivatives market has achieved significant growth since the KOSPI 200 futures were first listed on the Korea Exchange (KRX) in May 1996. Thanks to KOSPI 200 options, with a daily average trading volume of 14 million contracts as of end-2010, the KRX gained the largest derivatives trading volume in the world.
However, there is criticism that Korea`s futures and options markets need improvement in many aspects. First, most of the derivatives transactions within the KRX have been concentrated on KOSPI 200 futures and options for quite some time, and the markets for futures and options on interest rates, foreign currencies, and commodities are still underdeveloped. Furthermore, individual investors still account for a high percentage of the trading volume in Korea`s futures and options markets and have experienced huge losses from trades. (The rest omitted)