KRX Info Sessions for July 2014

KRX will hold info sessions next week Monday and Tuesday

Monday July 14, 2014 at 3pm will be about the new Derivatives Stability Plan (price bands, error trade rules), remodeling about Equity futures and options, improving block trade plans, and having new long term products (like 20y KTBs). Related Sales, IT, Compliance from each KRX Member is required to attend.

Tuesday July 15, 2014 at 4pm will be more focused on Equity futures and options and plans to improve market making system. Related Sales team from each KRX Member is required to attend.

**Whether KRX will start to allow clients to join the market making system (Currently only KRX members are market makers), and whether it will include foreign clients, and whether it will include existing products or only new products is of interest.

UPDATES: KRX official said that the market making system will not include foreign investors, however there will be a newly implemented incentive system for foreign institutions who will trade a lot which will first start with equity futures. The incentive system will be a monthly reimbursement system of exchange fees after trading is done.

Hyundai Futures and Zomojo?!

http://www.ajunews.com/view/20140708154432443

So although it has been known to the market, this news article is pretty detailed.

A brief summary, Hyundai Futures was accused of receiving KRW 200Mil each month (Approx USD 200k) from Australian firm Zomojo to have naked direct access (=full ownership/control to the client, none to the broker) to the KRX to trade ETD products. Whichever KRX firm who cried wolf (rumor has it: one of the affected firms this year from the big chaotic options event), stated that it gave this trading firm an advantage over retail firms and is considered unfair trading.

Hyundai Futures claimed they don’t even have an account opened by Zomojo nor own a FEP serviced by them, and KRX/FSS somewhat backed their claims saying that with the new DMA regulations, there are/should be no cases as these, however even if they are to have brokerage audits, it would take a lot to figure out whether the KRX members are bending the rules.

Currently, there are 1200 accounts opened by foreign investors in F&O since March 2014.

Zomojo is one of the old players in the KOSPI market and has been known to promote/sell their FEP software to other brokers. It is not known which Korean brokers actually use their services. They were also involved with a lawsuit against Zeptonics, which can be read here:

http://www.brw.com.au/p/business/happening_zomojo_plans_again_clean_YmCYAggdUtVLv8vtkjRIEM

 

Welcome!

Welcome to Trade Kospi Korea! I hope the information obtained here about trading Korea Exchange products would be helpful for potential and existing traders. Currently I have 7 years of experience at a KRX Member firm dealing with all kinds of different types of foreign investors. I have opened this site to the public for all to see, but I will choose to make certain contents private for my own clients on fear of plagiarism.   If you have any questions related to things you would like to see on this website or future business, please email me at blogsforaliving@gmail.com.

 

Happy Trading!