Korea Exchange Offers Integrated Customer Account Services For Futures Traders From May 2

Korea Exchange (KRX) announced that it had begun to offer new services from May 2 that would allow futures traders to open a single account for two contracts including KOSPI 200 and KTB contracts. Previously, traders were required to open separate accounts if they traded more than one contract via a futures company, but with the launch of the combined account services, market users can now avoid this cumbersome process.

Under the integrated account services, traders can use the basic deposit placed for trading of KOSPI 200 contracts as their customer margin for other contracts such as KTB futures, which will result in the efficient management of their margins, as well as reducing transaction costs.

However, securities companies are not likely to benefit greatly from the integration of accounts as they are only allowed to trade stock index-related products such as KOSPI 200 contracts under the current laws and are not able to deal in other futures products such as KTB and USD futures.

Basic Deposits and Trading of KOSPI 200 Futures Under the Integrated Account Services

1. Before the Integrated Services
   • A trader can order two KOSPI200 contracts1)
   • A trader cannot use the basic deposit for the trading of other products such as KTB futures(Customer margin should be placed separately)
2. After the Integrated Services
   • A trader can order two KOSPI 200 futures contracts or up to 8 KTB futures contracts2)

Note

1. If the KOSPI200 is 100, the preliminary margin per contract is 7.5 million won (100×500,000 won×1 contract×15%)
2. When preliminary margin per KTB futures contract is 1.8 million won