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Taking into consideration the time required for the member companies to develop or upgrade their system, the Korea Exchange (“KRX”) decided to launch the trading of Mini Gold Futures, the first mini-sized futures contract in Korea, on September 13, 2010.
Trading unit of Mini Gold Futures is 100g of refined gold with purity of 99.99%. Trading hours is 09:00~15:15 from Monday to Friday and the same hours applies on the last trading day. Last trading day is the third Wednesday of each settlement month and T+2 settlement scheme applies. Final settlement is made by cash and final settlement price is determined by converting the London Gold AM Fixing Price into price per gram and UK Pound into Korean Won. Position limit of 3,000 contracts is set to prevent the risks of settlement default and unfair trading.
KRX expects that Mini Gold Futures provides effective risk management tool to small-scale gold wholesalers and retailers, manufacturers and retail gold investors. It is also expected that it would lure the demand for overseas gold futures by Korean investors into Korea and the publication of real-time price of Mini Gold Futures would enhance the transparency of local gold market.
