Exchange to Suspend KOSPI 200 Futures Night Market Trading Starting from the 7th

[Asia Economy Reporter Song Hwajeong] The Korea Exchange announced on the 6th that it will suspend global trading of KOSPI200 futures through the Chicago Mercantile Exchange (CME) in the United States (overnight market 18:00~05:00 the next day) starting from the 7th.

This is because the KOSPI200 index has been reclassified as a concentrated index, changing the regulatory jurisdiction of index futures based on this index from the Commodity Futures Trading Commission (CFTC) to joint jurisdiction by the Securities and Exchange Commission (SEC) and CFTC. According to U.S. regulations, unregistered exchanges with the SEC cannot execute trades through facilities located within the United States.

According to the U.S. Commodity Exchange Act, if the number of days on which a specific stock in a stock index exceeds 30% surpasses 45 days within the last three months, it is classified as a concentrated index.

The Exchange stated, "Despite the suspension of global trading through CME, the regular market for KOSPI200 futures (including mini futures) (09:00~15:45) will continue to operate, so market participants can continue trading through the regular market," and added, "Since only certain institutional investors with U.S. nationality can trade this product, they must pay attention to trading according to related guidelines."

The Exchange plans to consider expanding products listed on Eurex and operating through the KRX's own system to enhance trading convenience and expand investment opportunities for investors in overnight derivatives trading.