.jpg)
Expanded Application of Auction at a Single Price
All orders will be matched and executed at a single price, which requires a pre-open session, at the beginning of regular trading session as well as at the market resuming after a trading halt. So far, index products including KOSPI200 and KOSDAQ50 have been processed by the way of auction at a single price.
Simplification of Order Notification
The order form, previously consisting of four notifications - open long, open short, long liquidation, and short covering - will now be simplified to two: long and short. Simplified order notifications are expected to speed up the order execution process. In addition, automated netting system on a real-time basis is implemented within the same account, among the same product series.
Exemption of Preliminary Margin Requirements for Standard Combination Orders
Standard combination orders on 3-year and 5-year KTB Futures, and US Dollar Futures for rollover are exempted from preliminary margins. Current preliminary margin requirements, especially for standard combination orders often result in excessive amounts of deposits. By reducing trading costs for investors, this change is expected to give a new impetus to combination transactions.
Block Trade Introduced for KOSDAQ50 Futures
In an effort to facilitate block trades in KOSDAQ50 Futures, thus far hindered by the low liquidity of KOSDAQ50 products, and to embrace OTC market-traded KOSDAQ50 contracts into the exchange, KOFEX will include KOSDAQ50 Futures among its designated block trade items. KOFEX has recently included US Dollar Futures among these negotiated block trade items as well.
Changes in Market Information Posting
The open interest information by type of investors,thus far providedby KOFEX, on all products except KTB Futures, US Dollar Futures and KOSPI200 products, will be discontinued from June 28. This measure, adopted to minimize undue disclosure of positions held by market participants, is in accordance with rules already implemented in KOSPI200 Futures and Options and with the prevailing international standard on this matter.
The proposed changes have already been approved by both the Board of Directors on May 4 and by the Financial Supervisory Committee (FSC) on May 28, and will go into effect from June 28, 2004. From June 14 to June 25, KOFEX will hold a 2-week mock trading session in order to provide opportunities for individual investors to better understand the changes.
