Development of Four Key Areas Including System and Network Infrastructure
Supporting Securities Firms' Participation with PowerBase Upgrade
Addition of Night Trading Data to CHECK Expert+
As the domestic derivatives market enters the era of night trading, Koscom announced on June 26 that it has successfully completed the establishment of infrastructure in four key areas of the capital market to support this transition.
Previously, on June 9, the Korea Exchange opened the night trading market for derivatives. In addition to the existing regular market hours (8:45 a.m. to 3:45 p.m.), futures and options trading is now available during the night session (6:00 p.m. to 6:00 a.m. the following day).
Koscom, which is responsible for the IT infrastructure of the domestic capital market, also contributed to the launch of the derivatives night market. The four key areas supported by Koscom are: ▲ development of the night derivatives market trading and matching system, ▲ network infrastructure, ▲ financial data services, and ▲ development of PowerBase linkage for the night derivatives market.
In March last year, Koscom established the 'Derivatives Night Market Development Task Force' and has since been working on building the Korea Exchange's own night trading system for derivatives. To ensure stable futures and options trading during night hours, Koscom developed its own night system covering all aspects of the market, including matching engines, trading statistics, and information distribution. This system was integrated with the existing clearing, settlement, and market surveillance systems and has now begun operation. In particular, to ensure the stability of the night trading system, Koscom established an operational framework for 24-hour monitoring and is currently dedicating company-wide manpower, with numerous employees working night shifts every day to ensure stable operations.
Koscom also developed an integrated system to enable securities firms using its main ledger management system, PowerBase, to participate in night trading. Starting with the design of the night derivatives market linkage trading system in December last year, PowerBase underwent four months of development and internal testing before supporting member firms' participation in the simulated market from the end of March this year.
To minimize the impact on the existing day derivatives market, Koscom built dedicated FEP, AP servers, and DB tables for the night derivatives market, and separated the order screens to prevent user errors. Currently, Koscom is providing stable services to five foreign securities firms using PowerBase. During the rehearsal period, Koscom supported member firms with testing to ensure the stable operation of their own systems, and on the day of launch, provided real-time intraday monitoring of the night derivatives market to support member firms' operations. After the night derivatives market opened, Koscom established a dedicated night support team to respond to member firms' needs, and set up an emergency contact network for rapid communication and response in case of emergencies. Koscom plans to expand this service to two additional foreign securities firms in the future.
Koscom also developed new screens for its information terminal, CHECK Expert+, to receive and process data related to night derivatives trading. The system provides information related to night trading and enhances user convenience by allowing selection between day and night markets on a single screen. It offers data such as current prices in the night market, contract volume, contract value, open interest, and net buying by investor type. With the introduction of night spread trading, the system provides estimated night spread trading by investor type, and uniquely, Koscom independently calculates and provides night derivatives options Greeks (delta, gamma, theta, vega). Investor position estimates for the night options market are also available.
Koscom also established a robust network infrastructure. New lines specialized for the night trading environment were made available, and existing day trading lines can also be shared, enhancing connectivity between securities firms and the exchange. Redundant communication networks and a 24-hour monitoring system ensure continuity and stability of trading during night hours.
Koscom plans to continue enhancing its services after stabilizing night trading operations. A Koscom representative stated, "By providing technical support across all areas?from the development of the derivatives night market system, advancement of PowerBase, development of CHECK Expert+ screens, to the establishment of network infrastructure?we have created an environment where securities firms can offer stable night trading services." The representative added, "Koscom will continue to provide unwavering technical support to ensure the successful establishment of the Korea Exchange's derivatives night market," and further stated, "We will continue to be a reliable IT partner leading digital innovation in the capital market, providing the highest level of technological services to satisfy both investors and financial institutions."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
