- Background
-
The Korea Exchange (KRX) has been providing the night trading services in connection with major global exchanges, such as CME and Eurex, since 2009. Night trading has provided investors with risk management tools and various investment strategies to cope with changes in stock price and exchange rate in overseas markets during nighttime hours.
Through more than 10 years of linked trading, KRX has been able to accumulate sufficient experience in operating the night market, and has established its own infrastructure necessary for night trading thanks to advancements in IT technology. Finally, the KRX has decided to launch its own derivatives market’s night session.
- Expected Effects of Introducing Night Session
-
- Reduction of Trading Costs
KRX night session allows members to directly trade in the KRX market without having to place orders with other members, just like regular trading.
Accordingly, it is expected that market participation costs will be reduced for members and trading fee for investors will also be lowered.
* In Eurex-linked trading, KRX members have paid brokerage fee to Eurex members as clients.
- Stability of Market Operation
Systems and Regulations can be improved in a timely manner as transactions take place in a market directly operated by KRX.
Risk factors beyond KRX’s control, such as intercontinental network issues that could occur in existing linked trading, can be reduced.
- Improvement of Risk Management
Investors are expected to be able to utilize more diverse investment strategies and strengthen their risk management by expanded night session products.
- Convenience for Investor Trading
Trading convenience would be improved as KRX night session largely follows trading rules of the regular session, and uses the same system.
※ Please refer to the guidebook and pamphlet below for detailed information.