Clearing & Settlement(T+1)
Settlment deadlines for daily futures on KOSPI200 Options and Mini KOSPI200 Futures is 15:00 on T+1 day (CET 08:00 next day). Investors who are required to deposit an additional margin (as the result of a trade loss) must keep the deadline, but the withdrawal (as the result of a trade profit) is possible after 2 hours, because of the time difference between Korea and Central Europe.
Clearing & Settlement(T+1)
Time Settlement procedure
T+1 05:00
  • EUREX linked market closed
T+1 15:00 Profit/Loss Calculation
  • ECAG ⇄ ECAG clearing member
  • Settlement Price : base prices of KRX regular market
T+1 17:00 Profit/Loss Calculation
  • ECAG clearing member ⇄ KRX Member
  • Deposit (Loss) : T+1 15:00
  • Withdrawal (Profit) : T+1 17:00
T+1 17:00 Profit/Loss Calculation
  • KRX Member ⇄ Customers
  • Deposit (Loss) : T+1 15:00
  • Withdrawal (Profit) : T+1 17:00

T day: Eurex linkage trading day, Time: Korea Standard Time (KST)

Pre-hours Negotiated Trading(Final Settlement)
  • Pre-hours negotiated trading is the final stage of determining the settlement quantity for the open positions after the closing of the Eurex market. After the market closing, Eurex transmits the data on open positions of daily futures on KOSPI200 Options & Mini KOSPI200 Futures to KRX and its members, and KRX executes the negotiated trades applied by members in the pre-hours session.
  • The settlement for the pre-hours negotiated trading is made 2 business days (T+2) after aggregating the settlement portion for trades that took place during a regular session on T+1. The settlement is not necessary for Mini KOSPI200 Futures trades that occur during pre-hours negotiated trading.
Examination of Customer margin level
  • KRX Member firm ensures that margin deposited by a customer is sufficient according to the rules of Derivatives Market of KRX by 07:30.
    In case where the investment risk in trading of daily futures on KOSPI200 options and Mini KOSPI 200 Futures on Eurex has been monitored on real-time basis, the customer margin is not reviewed once again (real-time monitoring is mandatory for Korean investors)
Order placing for Pre-hours Negotiated Trading
  • KRX Member firm must submit the orders for Pre-hours Negotiated Trading from 07:30 to 08:20 for the customers who satisfy the margin requirements
  • In case of customer satisfying the margin requirement, an opportunity to participate in the single-price auction that begins at 08:00 is given after the execution of negotiated trade
Notification of account for which the order for negotiated trade is refused
  • Details of customer accounts that failed to deposit additional margin are notified to KRX and Eurex members by 08:20
  • Because of the nature of negotiated trade, when the entrustment of any of bid or ask order is refused, a settlement default may occur (in Eurex) because of settlement failure of any bid/ask order randomly related to the refused entrustment. To minimize such market risk, the KRX members notify KRX the quantity of entrustment of customer that failed to deposit additional margin.
  • Transfer of refused order entrustment to ECAG: ECAG is obliged to take over the orders that were refused because of insufficient margin deposit.
  • ECAG takes over the rejected orders and concludes the negotiated trade, and then closes off the positions by reverse trading during single-price auction for determination of opening price.
Handling after Refusal to accept order entrustment for Pre-hours Negotiated Trading
  1. 08:20 : Deadline for Refusal to accept order entrustment for Pre-hour Negotiated Trading
  2. 08:20 ~ 09:00 : ECAG acts as CCP* for the accounts with insufficient margin deposit.
    • KRX Member firm which has ECAG settlement account : SG Securities Korea
      ⇒ Participation under ECAG’s name: To take over all positions for which the order submitted for pre-hours negotiated trading was turned down.
  3. 09:00 ~ : ECAG closes off the positions that it took over
    • The positions taken over are cleared by offset trade in the KRX regular session
    • In case of low liquidity product, Offset Trade may take few days
  4. After clearing the open positions by Offset Trade : ECAG will exercise the right of indemnity against KRX member firm or Eurex member firm.
Content Manager
  • Global Markets Operations 051-662-2707