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Changes in the settlement method in the case of the right to sell being exercised: physical cash settlement delivery
Cash settlement is absolutely superior in terms of improving liquidity for stock options
Method: delisting all issues of physical delivery altogether and listing all issues of cash settlement simultaneously.
Reduced trading hours at the last trading day: 15:15 - 14:50
The settlement deadline at the last trading day: T+3 – 16:00 of T+1(the next day)
Increase in the number of underlying stocks for stock options: 7 -> 30 (23 new stocks added to the list)
2. Changes in the Post-Trading Margin Rules for Qualified Institutional Investors
Qualified institutional investors will be allowed to place a post-trading margin for all of their trades.
- The application of the new rule will be extended to all products including KTB futures.
- The application of the new rule will be extended to all types of trading (hedge, arbitrage, and speculative)
3. Block Trade Will Be Introduced for 3-Year KTB Futures
4. Other Changes
The last trading day of December will be designated as a holiday for interest rate products as it is for other products.
Stocks classified as “issues requiring caution” that are traded on the KOSDAQ Stock Market will be excluded from the list of substitute securities.
Customer margin will be exempted for orders of block trading placed for the purpose of a rollover.
Change in the base time for determining the exercise price for USD options: 12:00 – 11:30.
Effective Date: the second half of 2005
