Korean financial infrastructure provider Koscom and derivatives broker MF Global Singapore have signed an agreement to offer trading in overseas futures to South Korean institutional investors. Koscom will connect its front-end trading platforms to MF Global's back-end solutions to provide execution and clearing services into exchanges around the world.
Through this partnership, institutions and brokers in South Korea will have access to overseas listed futures and options markets through MF Global's connectivity to major global exchanges. MF Global is currently a member of 70 exchanges around the world.
Yoon Kyung, director of Koscom's financial business group, said that the partnership with MF Global would help to broaden the product offerings on Koscom's trading infrastructure in South Korea.
The Korean derivatives market, which is dominated by retail investors, underwent a process of reform following a mini-crash in November 2010, when the KOSPI Index fell 2.4%.
Korea's regulators, the Financial Services Commission (FSC) and Financial Supervisory Service, subsequently issued a joint statement revising margin rules and imposing daily order limit requirements, which the Korea Exchange later reaffirmed and added to with a revision of regulations related to ex-post margin system and position limit, set up in March.
Following an investigation into the mini-crash, the FSC banned Deutsche Bank's Korean broker-dealer business for operating for six months, which will run until 30 September 2011.