Derivatives Market GLOBAL PREMIER EXCHANGE

The South Korean derivatives market was launched with the listing of KOSPI200 futures in May 1996. It has since emerged as a leading derivatives market by listing KOSPI 200 Options in 1997 and Korea Treasury Bond futures and U.S. dollar futures in 1999.

The KRX derivatives market recorded an average daily trading value of KRW 18 trillion in 2005 thanks to the explosive growth of KOSPI 200 futures, outperforming other major exchanges in the U.S., Europe, and beyond. The trading value of the KRX derivatives market, which once fell due to more stringent regulations designed to protect investors, has continued to rise since 2014, making the market ever-more dynamic.

Tools for managing risk in the rapidly developing financial environment were not efficient until the appearance of KOSPI200 Futures and Options, 3-Year Korea Treasury Bond Futures, and US Dollar Futures after 1996.

In particular, companies and investors alike recognized the importance of risk management during the financial crisis of 1997. Their concerns have been constructive in the development of the current Derivatives Market. The Derivatives Market applied these risk management concerns in the establishment of 26 wide-ranging derivatives markets for investors such as stock price indices, bonds and interest rates, currency, products, and individual stock. Furthermore, the cornerstone for the expansion of financial markets will be strengthened through the development of new products.

The establishment of the domestic derivatives markets strengthens the competitiveness of the national financial market in addition to functioning as a risk management tool for investors.

Investors can determine the appropriate market price using arbitrage trading through the linked trading of stocks and bonds in both the spot market and futures and options markets. Furthermore, securities, banks, investment trust, insurance, and other financial institutions use futures and options to develop investment products with diverse yield structures for investors.

The development of our domestic financial markets through futures and options markets is a major contributor to the competitiveness of our nation’s financial industry.

To offer investors the utmost convenience, we are actively pursuing the maintenance of customer-focused trading systems. In addition, we are striving for the production of cutting-edge trading systems to develop a stable and prompt trading environment. Simultaneously, diverse new products will be developed and offered so that investors can keep up with the constantly changing global financial environment.

The Derivatives Market Division is determined to develop even more. The main foundations of a strong market are market stability, liquidity, and swift completion of transactions.

All employees of the Derivatives Market Division have unified to strive towards the future as one. The Derivatives Market Division puts emphasis on international cooperation with global exchanges and develops emerging Asian markets through exporting KRX's trading system in order to leap into the ranks of advanced markets.