CHICAGO and BUSAN, South Korea, Nov. 16 /PRNewswire-FirstCall/ -- CME Group, the world's largest and most diverse derivatives marketplace, and the Korea Exchange Inc. (KRX), a premier capital marketplace for Northeast Asia, today announced the launch of the first phase of their program to provide customers with after-hours access to KOSPI 200 Futures hosted on the CME Globex electronic trading platform by routing orders through KRX Unified System for Global (USG) trading.
In addition, Chicago Mercantile Exchange (CME) and KRX also indicated their commitment to pursue a potential bi-directional order routing initiative, based on the model CME Group has implemented successfully with BM&FBOVESPA in Brazil. This initiative is subject to regulatory approvals. Building on CME Group's track record of successful relationships, volume routed through CME Globex now accounts for more than 25 percent of trading activity in BM&FBOVESPA's stock index futures contracts.
"The launch of after-hours trading for KOSPI 200 Futures on CME Globex is a significant achievement, and we are proud to partner with KRX to deliver this advancement in Korean capital markets," said Phupinder Gill, CME Group President. "Through this initiative, we will work with KRX to create opportunities to expand access and increase distribution of both exchange's products globally. Our partnership with KRX is another example of CME Group's commitment to Asia and to expanding our services to customers around the world."
"This after-hours trading for KOSPI 200 Futures on CME Globex is a big breakthrough for the global expansion of the KRX derivatives market," said Chang-ho Lee, Acting Chairman and CEO of KRX. "In this regard, I'm very glad that we can provide the enhanced tool of 24-hour risk management to customers and the opportunity of a new revenue source to members."
As phase one of this multi-phase program is completed, KRX clearing members will have access to the KOSPI 200 Futures market via the USG. Direct access through global CME Globex connections is subject to regulatory approvals.
The KOSPI 200 comprises the 200 largest publicly-traded companies on the Korean Exchange. This index is seen as a barometer of the overall movements of the Korean stock market, and is used to benchmark the performance of investors and funds in the Korean market. According to the first half of 2009 statistics compiled by Futures Industry Association, KOSPI 200 Futures is the 6th most traded index futures in the world in terms of trading volume, with 43.9 million contracts.
For additional information about KOSPI 200 Futures on CME Globex, visit: http://eng.krx.co.kr/index.html
About CME Group
As the world's largest and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the largest central counterparty clearing services in the world, which provides clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort®. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk in both listed and over-the-counter derivatives markets.
CME Group is a trademark of CME Group Inc. The Globe logo, CME, Chicago Mercantile Exchange and Globex are trademarks of Chicago Mercantile Exchange Inc. Chicago Board of Trade is trademark of Board of Trade of the City of Chicago, Inc. ClearPort is a trademark of New York Mercantile Exchange, Inc. All other trademarks are the property of their respective owners. Further information about CME Group (Nasdaq: CME) and its products can be found at www.cmegroup.com.
For additional information about CME Group's U.S. equity indices, visit: www.cmegroup.com/equity.
Korea Exchange Inc., established in January 2005 through the merger of the Korea Stock Exchange (KSE), the Korea Futures Exchange (KOFEX), the KOSDAQ Market, and the KOSDAQ Committee, is the sole exchange in the Republic of Korea. The KRX operates the centralized securities and derivatives markets where stocks, bonds and derivatives are traded on a common platform. To best serve its clients, the KRX provides its customers with the full access to both cash and derivatives markets, and clears and settles all transactions on its markets as one-stop service. KRX offers diverse derivatives products primarily in the following areas: individual stocks, stock index, bond/interest rate, foreign currency and commodities.
Korea Exchange, KRX, KOSPI and KOSPI 200 are registered trademarks of Korea Exchange Inc. Further information about KRX and its products can be found at http://eng.krx.co.kr/index.html.
SOURCE CME Group