Cumulative Figures Of Physical Delivery For US Dollar Futures Exceeded US $30 Billion In KRX

After fifteen years since first listing U.S. dollar futures in the Korea Exchange (KRX) in 1999, the cumulative amount of physical delivery for U.S. dollar futures has exceeded US $30 billion as of June, 2014. 

The time taken to reach every US $10 billion in accumulated physical delivery for U.S. dollar futures has been significantly shrinking, as the first $10 billion was reached in eight (8) years and seven (7) months, while the $20 billion mark was achieved three (3) years and 10 months later, and the latest $30 billion mark in window just two (2) years and nine (9) months after that. 

Along with this, naturally the monthly average amount of physical delivery has also been increasing every year—from US $210 million in 2011 to $260 million in 2012, $290 million in 2013, and $400 million in the year of 2014. 

The increased amount of physical delivery suggests that the U.S. dollar futures market is growing to be more user-friendly and has been effective in hedging foreign currency risks. Furthermore, despite the decreased trading volume in the U.S. dollar futures market due to recent trend of a strong Korean Won, the increase of physical delivery of U.S. dollar futures reflects the qualitative development of currency futures market in the KRX. 

The KRX U.S. dollar futures market is expected to be a more efficient marketplace for managing currency exchange risks and procuring spot exchange, thereby making foreign exchange risk management easier for market users, and particularly, institutional investors.