Difference between revisions of "Korea Exchange"

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| homepage =  http://eng.krx.co.kr
 
| homepage =  http://eng.krx.co.kr
 
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The Korea Exchange (KRX) was formed in 2005 from the [[merger]] of four domestic Korean [[exchange]]s, but has since grown rapidly, establishing itself as a leader among the world's [[derivatives]] exchanges by [[trading]] [[volume]].
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The Korea Exchange (KRX) was formed in 2005 from the [[merger]] of four domestic Korean [[exchange]]s, but has since grown rapidly. According to a recent [[Futures Industry Association]] survey, KRX was the world's leading [[derivatives]] exchange measured by trading volume[[volume]] in 2009 after placing third the previous year, and KRX recently established distribution agreements for its [[KRX KOSPI 200]] benchmark [[index]] products with its two leading competitors, [[Eurex]] and the [[CME Group]].  
  
 
==Background==
 
==Background==
The KRX was formed on Jan. 27, 2005, from the [[merger]] of the [[Korea Stock Exchange]] (KSE), the [[Korea Futures Exchange]] (Kofex), the [[Kosdaq Market]] and the Kosdaq committee, part of the [[Korea Stock Dealers' Association]]. It provides an [[electronic platform]] for the [[trading]], [[clearing]] and [[settlement]] of [[cash]] [[equities]], [[bond]]s and derivatives.
 
  
Ownership of KRX was split (as of 2007) between 44 financial and government entities, led by [[Woori Investment Securities]] (6.3 percent); [[Daewoo Securities]] (3.2 percent) and [[Daishin Securities]] (3.2 percent). Overseas owners include [[JP Morgan]], [[Citigroup]] and Australia's [[Macquarie Bank]].<ref>{{cite web|url=http://www.krx.co.kr/index.html|org=KRX|name=KRX 2006 Business Report|date=December 29, 2007}}</ref>
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The KRX was formed on Jan. 27, 2005, from the [[merger]] of the [[Korea Stock Exchange]] (KSE), the [[Korea Futures Exchange]] (Kofex), the [[Kosdaq Market]] and the Kosdaq committee, part of the [[Korea Stock Dealers' Association]]. It provides an [[electronic platform]] for the [[trading]], [[clearing]] and [[settlement]] of [[cash]] [[equities]], [[bond]]s and derivatives. Ownership was split in 2007 between 44 financial and government entities, led by [[Woori Investment Securities]] (6.3 percent); [[Daewoo Securities]] (3.2 percent) and [[Daishin Securities]] (3.2 percent). Overseas owners include [[JP Morgan]], [[Citigroup]] and Australia's [[Macquarie Bank]].<ref>{{cite web|url=http://www.krx.co.kr/index.html|org=KRX|name=KRX 2006 Business Report|date=December 29, 2007}}</ref>
  
According to the 2009 [[volume]] rankings of world [[derivatives]] [[exchanges]] by the [[Futures Industry Association]] (FIA), the KRX ranked first, with over 3.1 billion [[futures]] and [[options]] traded and/or cleared.<ref>{{cite web|url=http://www.futuresindustry-digital.com/futuresindustry/201003#pg22|name=Annual Volume Survey|org=FIA|date=March 29, 2010}}</ref> KRX increased its 2009 trading [[volume]] by 8.3 percent over 2008, when it ranked third behind only [[CME Group]] and [[Eurex]].
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The Korea Exchange was the world's busiest in 2009, according to the annual [[Futures Industry Association]]'s survey of the world's leading derivatives exchanges. <ref>{{cite web|url=http://www.futuresindustry-digital.com/futuresindustry/201003#pg20|name=2009 Annual Volume Survey|org=FIA magazine|date=April 8, 2010}}</ref> The FIA report, published in early April, 2010, notes that the number of futures and options traded on the Korea Exchange rose 8.3% on the 2008 figure to hit 3.101 billion, topping larger rivals [[Eurex]] and the [[CME Group]]. The Korea Exchange's [[Kospi 200 Options]] (KRX) also headed the FIA's list of the wold's top-20 [[equity index]] futures and options with 2.921 billion [[options]] traded, up 5.6% on the 2008 figure.
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In mid-2009 KRX announced a program with the Laotian government to establish a [[stock exchange]] there in return for a 49 percent [[stake]],<ref>{{cite web|url=http://www.chinapost.com.tw/business/asia/korea/2009/07/24/217645/S.-Korea.htm|name=S. Korea to help set up stock exchange in Laos|org=China Post|date=October 31, 2009}}</ref> marking the third exchange in the Mekong region that the KRX had helped establish. Cambodia will begin construction on its first [[stock]] exchange in December of 2009, 49% of which will be held by KRX. The Cambodia exchange plans to launch with four or five companies issuing about $10 million worth of [[share]]s each.<ref> {{cite web|url = http://www.forbes.com/feeds/afx/2009/10/31/afx7070489.html|name = Construction of Cambodian bourse to begin in Dec|org = Forbes|date = November 3, 2009}}</ref>. KRX has a similar agreement in Vietnam.
  
 
==Key people==
 
==Key people==
In 2010, Kim Bongsoo became Chairman and CEO of the KRX. He was the former president of Kiwoom Securities Company, one of the member firms of KRX.
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In 2010, [[Kim Bongsoo]] became Chairman and CEO of the KRX. He was the former president of Kiwoom Securities Company, one of the member firms of KRX.
 
He took over as CEO after the sudden departure in October 2009 of previous KRX head [[Lee Jung-Hwan]].<ref>{{cite web|url=http://www.koreatimes.co.kr/www/news/biz/2009/10/123_54592.html|name='Too Many Bureaucrats in KRX'|org=Korea Times|date=October 31, 2009}}</ref> Lee Jung-Hwan had been at the top job at KRX for only eight months, after joining the exchange in early 2005 as the head of its management [[strategy]] division. He had previously worked at [[South Korea's Ministry of Finance and Economy]], spent three years with the [[World Bank]] and led the Korean delegation to the [[OECD]].<ref>{{cite web|url=http://online.wsj.com/article/SB122868430101786169.html|name=Korea Exchange CEO Leads Through Downturn |org=Wall Street Journal|date=November 1, 2009}}</ref>
 
He took over as CEO after the sudden departure in October 2009 of previous KRX head [[Lee Jung-Hwan]].<ref>{{cite web|url=http://www.koreatimes.co.kr/www/news/biz/2009/10/123_54592.html|name='Too Many Bureaucrats in KRX'|org=Korea Times|date=October 31, 2009}}</ref> Lee Jung-Hwan had been at the top job at KRX for only eight months, after joining the exchange in early 2005 as the head of its management [[strategy]] division. He had previously worked at [[South Korea's Ministry of Finance and Economy]], spent three years with the [[World Bank]] and led the Korean delegation to the [[OECD]].<ref>{{cite web|url=http://online.wsj.com/article/SB122868430101786169.html|name=Korea Exchange CEO Leads Through Downturn |org=Wall Street Journal|date=November 1, 2009}}</ref>
  
 
==Key contracts==
 
==Key contracts==
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The following contracts [[list]]ed on KRX have [[MarketsWiki]] entries:
 
The following contracts [[list]]ed on KRX have [[MarketsWiki]] entries:
  
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== Joint Ventures ==
 
== Joint Ventures ==
  
The Korea exchange and Eurex agreed to launch a joint Eurex/KRX Link on August 30, 2010 in which the two exchanges agree to trade and clear options on Korea’s blue-chip index KOSPI 200 on Eurex during European and North American trading hours.
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KRX recently consolidated its position in the international [[derivatives]] market by agreeing to have its two largest global competitors, [[Eurex]] and the [[CME Group]], electronic distribute and allow trading in [[options]] and [[futures]] respectively on its benchmark [[KRX KOSPI 200]] stock [[index]].  
  
Eurex and KRX are jointly preparing the launch of daily futures on [[KOSPI 200 Options]] (the Eurex KOSPI Product) at Eurex and have been in an extensive member consultation process since the beginning of 2010.<ref>{{cite web|url=http://deutsche-boerse.com/dbag/dispatch/en/notescontent/gdb_navigation/home/INTEGRATE/mr_pressreleases?notesDoc=5725B032FB2BABFCC12577610024D78C&newstitle=koreaexchangeandeurexreceivest&location=home|name=Korea Exchange and Eurex Receive Strong Support from Major Market Participants for Their Link|org=Deutsche Borse Group|date=July 16, 2010}}</ref>
 
  
Fifteen KRX members have indicated that they will be ready to trade the Eurex KOSPI Product during the course of 2010; eight from day one. On the Eurex side, another 16 members expressed interest to execute business for KRX members.<ref>{{cite web|url=http://deutsche-boerse.com/dbag/dispatch/en/notescontent/gdb_navigation/home/INTEGRATE/mr_pressreleases?notesDoc=5725B032FB2BABFCC12577610024D78C&newstitle=koreaexchangeandeurexreceivest&location=home|name=Korea Exchange and Eurex Receive Strong Support from Major Market Participants for Their Link|org=Deutsche Borse Group|date=July 16, 2010}}</ref> Among the interested Eurex and KRX member firms are:
 
  
[[Daewoo Securities]] Co., Ltd; [[Deutsche Bank]] AG; [[Deutsche Securities Korea]] Co.; [[Goldman Sachs]] International; [[Hana Daetoo]] Securites, Ltd.; [[Hyundai Securities]] Co., Ltd.; [[Interactive Brokers]]; [[Korea Investment & Securities]] Co., Ltd.; [[MF Global]]; [[Morgan Stanley]]; Newedge Financial Hong Kong Limited, Seoul Branch; [[Newedge Group]]; [[RBS]] Global Banking & Markets; [[Samsung Futures]] Inc.; [[Tong Yang Securities]] Inc.; [[ABN AMRO Clearing]] (formerly known as Fortis Clearing).
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The Korea Exchange and [[Eurex]] agreed to launch a joint Eurex/KRX Link on August 30, 2010 in which the two exchanges agree to trade and clear options on Korea’s blue-chip index KOSPI 200 on Eurex during European and North American trading hours. The two have also jointly preparing the launch of daily futures on [[KOSPI 200 Options]] on Eurex, part of the [[NYSE Euronext]] group, since the beginning of 2010.<ref>{{cite web|url=http://deutsche-boerse.com/dbag/dispatch/en/notescontent/gdb_navigation/home/INTEGRATE/mr_pressreleases?notesDoc=5725B032FB2BABFCC12577610024D78C&newstitle=koreaexchangeandeurexreceivest&location=home|name=Korea Exchange and Eurex Receive Strong Support from Major Market Participants for Their Link|org=Deutsche Borse Group|date=July 16, 2010}}</ref>. Fifteen KRX members and 16 Eurex members say they will be ready to trade the Eurex KOSPI Product during the course of 2010.<ref>{{cite web|url=http://deutsche-boerse.com/dbag/dispatch/en/notescontent/gdb_navigation/home/INTEGRATE/mr_pressreleases?notesDoc=5725B032FB2BABFCC12577610024D78C&newstitle=koreaexchangeandeurexreceivest&location=home|name=Korea Exchange and Eurex Receive Strong Support from Major Market Participants for Their Link|org=Deutsche Borse Group|date=July 16, 2010}}</ref> [[IMC]] and [[Archelon]] have signaled their interest to actively quote as market makers.  
 
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Additionally, [[IMC and Archelon]] have signaled their interest to actively quote as market makers from day one.  
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==Latest news==
 
==Latest news==
On [[Oct. 31]], 2009, it was reported that Cambodia will begin construction on its first [[stock]] exchange in December of 2009. The Korea Exchange will own 49 percent of the exchange and Cambodia will own the rest. A spokesperson from the Korea Exchange said the exchange in Cambodia will start small with four or five companies issuing about $10 million worth of [[share]]s each.<ref> {{cite web|url = http://www.forbes.com/feeds/afx/2009/10/31/afx7070489.html|name = Construction of Cambodian bourse to begin in Dec|org = Forbes|date = November 3, 2009}}</ref>
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On [[Oct. 31]], 2009, it was reported that  
 
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The Korea Exchange stated in October 2009 that the most [[capitalized]] [[companies]] in each of its 16 [[equity]] groups have seen their share [[price]]s rise by 55.1 percent since the beginning of 2009 while the number two in each group saw growth of 54.6 percent.<ref>{{cite web|url=http://joongangdaily.joins.com/article/view.asp?aid=2911939|name=Rising tide lifts leaders, runners-up |org=Joongang Daily|date=October 31, 2009}}</ref> [[Stocks]] in the medical sector saw the highest [[growth]] at 197.79 percent, while at the other end telecommunications [[stock]]s fell 9.99 percent.  
 
The Korea Exchange stated in October 2009 that the most [[capitalized]] [[companies]] in each of its 16 [[equity]] groups have seen their share [[price]]s rise by 55.1 percent since the beginning of 2009 while the number two in each group saw growth of 54.6 percent.<ref>{{cite web|url=http://joongangdaily.joins.com/article/view.asp?aid=2911939|name=Rising tide lifts leaders, runners-up |org=Joongang Daily|date=October 31, 2009}}</ref> [[Stocks]] in the medical sector saw the highest [[growth]] at 197.79 percent, while at the other end telecommunications [[stock]]s fell 9.99 percent.  
  
In mid-2009 KRX announced it would assist the nominally-communist Laotian government to establish a [[stock exchange]] there, in which the Korea Exchange would hold a 49 percent [[stake]].<ref>{{cite web|url=http://www.chinapost.com.tw/business/asia/korea/2009/07/24/217645/S.-Korea.htm|name=S. Korea to help set up stock exchange in Laos|org=China Post|date=October 31, 2009}}</ref> The Laotian exchange would be the third in the Mekong region, following markets in Vietnam and Cambodia, that the KRX had helped establish.
 
  
 
In March 2010, KRX disclosed information about the increasing amount of foreign participants trading the [[KRX KOSPI 200 Index futures]] contract. During February, the number of foreign participants increased to 7.5 percent.
 
In March 2010, KRX disclosed information about the increasing amount of foreign participants trading the [[KRX KOSPI 200 Index futures]] contract. During February, the number of foreign participants increased to 7.5 percent.

Revision as of 06:28, 29 July 2010

Patsystems logo5 10.jpg

Korea Exchange (KRX)
Krx.png
Founded 2005
Headquarters Busan, South Korea
Products broad range of listed derivatives
Website http://eng.krx.co.kr

The Korea Exchange (KRX) was formed in 2005 from the merger of four domestic Korean exchanges, but has since grown rapidly. According to a recent Futures Industry Association survey, KRX was the world's leading derivatives exchange measured by trading volumevolume in 2009 after placing third the previous year, and KRX recently established distribution agreements for its KRX KOSPI 200 benchmark index products with its two leading competitors, Eurex and the CME Group.

Background

The KRX was formed on Jan. 27, 2005, from the merger of the Korea Stock Exchange (KSE), the Korea Futures Exchange (Kofex), the Kosdaq Market and the Kosdaq committee, part of the Korea Stock Dealers' Association. It provides an electronic platform for the trading, clearing and settlement of cash equities, bonds and derivatives. Ownership was split in 2007 between 44 financial and government entities, led by Woori Investment Securities (6.3 percent); Daewoo Securities (3.2 percent) and Daishin Securities (3.2 percent). Overseas owners include JP Morgan, Citigroup and Australia's Macquarie Bank.[1]

The Korea Exchange was the world's busiest in 2009, according to the annual Futures Industry Association's survey of the world's leading derivatives exchanges. [2] The FIA report, published in early April, 2010, notes that the number of futures and options traded on the Korea Exchange rose 8.3% on the 2008 figure to hit 3.101 billion, topping larger rivals Eurex and the CME Group. The Korea Exchange's Kospi 200 Options (KRX) also headed the FIA's list of the wold's top-20 equity index futures and options with 2.921 billion options traded, up 5.6% on the 2008 figure.

In mid-2009 KRX announced a program with the Laotian government to establish a stock exchange there in return for a 49 percent stake,[3] marking the third exchange in the Mekong region that the KRX had helped establish. Cambodia will begin construction on its first stock exchange in December of 2009, 49% of which will be held by KRX. The Cambodia exchange plans to launch with four or five companies issuing about $10 million worth of shares each.[4]. KRX has a similar agreement in Vietnam.

Key people

In 2010, Kim Bongsoo became Chairman and CEO of the KRX. He was the former president of Kiwoom Securities Company, one of the member firms of KRX. He took over as CEO after the sudden departure in October 2009 of previous KRX head Lee Jung-Hwan.[5] Lee Jung-Hwan had been at the top job at KRX for only eight months, after joining the exchange in early 2005 as the head of its management strategy division. He had previously worked at South Korea's Ministry of Finance and Economy, spent three years with the World Bank and led the Korean delegation to the OECD.[6]

Key contracts

The following contracts listed on KRX have MarketsWiki entries:

There are no restrictions on foreign individuals trading contracts listed on the KRX.

Joint Ventures

KRX recently consolidated its position in the international derivatives market by agreeing to have its two largest global competitors, Eurex and the CME Group, electronic distribute and allow trading in options and futures respectively on its benchmark KRX KOSPI 200 stock index.


The Korea Exchange and Eurex agreed to launch a joint Eurex/KRX Link on August 30, 2010 in which the two exchanges agree to trade and clear options on Korea’s blue-chip index KOSPI 200 on Eurex during European and North American trading hours. The two have also jointly preparing the launch of daily futures on KOSPI 200 Options on Eurex, part of the NYSE Euronext group, since the beginning of 2010.[7]. Fifteen KRX members and 16 Eurex members say they will be ready to trade the Eurex KOSPI Product during the course of 2010.[8] IMC and Archelon have signaled their interest to actively quote as market makers.

Latest news

On Oct. 31, 2009, it was reported that The Korea Exchange stated in October 2009 that the most capitalized companies in each of its 16 equity groups have seen their share prices rise by 55.1 percent since the beginning of 2009 while the number two in each group saw growth of 54.6 percent.[9] Stocks in the medical sector saw the highest growth at 197.79 percent, while at the other end telecommunications stocks fell 9.99 percent.


In March 2010, KRX disclosed information about the increasing amount of foreign participants trading the KRX KOSPI 200 Index futures contract. During February, the number of foreign participants increased to 7.5 percent.

References

  1. KRX 2006 Business Report. KRX.
  2. 2009 Annual Volume Survey. FIA magazine.
  3. S. Korea to help set up stock exchange in Laos. China Post.
  4. Construction of Cambodian bourse to begin in Dec. Forbes.
  5. 'Too Many Bureaucrats in KRX'. Korea Times.
  6. Korea Exchange CEO Leads Through Downturn. Wall Street Journal.
  7. Korea Exchange and Eurex Receive Strong Support from Major Market Participants for Their Link. Deutsche Borse Group.
  8. Korea Exchange and Eurex Receive Strong Support from Major Market Participants for Their Link. Deutsche Borse Group.
  9. Rising tide lifts leaders, runners-up. Joongang Daily.

Resources

External links