Eurex widens index derivatives deal with Korea

Deal with see new futures made available on Eurex, while Euro STOXX 50 futures will trade on Korea Exchange.

Eurex has extended its trading deal with Korea Exchange with the introduction of new index futures tradeable through the European exchange and in Korea.

An agreement between the two means Mini KOSPI 200 index futures will be listed to trade during Eurex trading hours. Additionally, Euro STOXX 50 futures will be made available to Asian investors via Korea Exchange.

An existing deal supports trading KOSPI 200 options via Eurex. The addition of futures products means traders can trade both via Eurex and creates a night-time market for both.

The addition of Euro STOXX 50 futures will mark the first time Korea Exchange has listed a derivative based on a global benchmark index. Eurex said Euro STOXX 50 is one of the most traded index derivatives globally and was the most widely traded foreign index derivative in Korea in 2015.

Jeffrey Tessler, member of the Deutsche Boerse executive board, said: “This strategic cooperation between KRX and Eurex is very beneficial for both Eurex and KRX customers. With the introduction of Mini KOSPI 200 futures, investors will be able to trade and hedge the Korean market with an additional Korean product 24 hours a day.”

Korea Exchange said the move will help it become established as a key Asian derivatives trading hub.