CME Group, the world's largest and most diverse exchange, and the Korea Exchange (KRX), a premier capital market place for Northeast Asia, announced today that they have signed an agreement for the KOSPI 200 futures contract to be listed on CME Globex, the electronic trading platform of CME Group.
The terms of the five-year agreement will include the creation of a telecommunications hub in Seoul and will mark the first time the KRX has embarked on a third-party agreement for its KOSPI 200 product.
More than 30 million KOSPI 200 futures, based on the KOSPI 200 stock index of the largest South Korean companies as measured by market capitalization, traded through July of 2008. Under the proposed agreement, CME Group will match the trades, with the KRX continuing to clear and settle their products. A memorandum of intent was signed between the two exchanges last year.
The contract, which will trade from 2:00 a.m. to 3:00 p.m. local time Chicago, or 5:00 p.m. to 6:00 a.m. local time Seoul, will be offered on the same platform as CME Group products, including derivatives on: the S&P 500(R), NASDAQ-100(R), Dow Jones Industrial Average(SM), MSCI Emerging Markets and MSCI EAFE(R) stock indexes; Eurodollars, U.S. Treasury bonds and notes; foreign exchange; grains and livestock; energy; metals; weather and real estate.
"The addition of the Korea Exchange's KOSPI 200 contract onto CME Globex will be an important part of our continued global expansion," said CME Group Executive Chairman Terry Duffy. "Our CME Globex trading platform provides market users around the world with access to all of the major asset classes. The addition of the KOSPI 200 futures will offer yet another key market to our electronic trading customers worldwide."
"This agreement with the KRX is another example of CME Group's continued expansion into the Asia marketplace," said CME Group Chief Executive Officer Craig Donohue. "Asia is a critical market and key area of focus for our long-term growth strategy. By adding the KOSPI 200 futures to CME Globex, we will increase worldwide access to this important benchmark product."
"This agreement for trading of KOSPI 200 futures on CME Globex will further strengthen the strategic cooperation between the CME Group and the KRX, and together, the two organizations plan to lead the global derivatives market,"
said Chairman and CEO of the KRX Jung-hwan Lee.