Eurex Unveils Korean Won FX Contract
Posted by Colin Lambert. Last updated: July 12, 2021
Eurex and the Korea Exchange (KRX) will strengthen the product range tradable via their joint Eurex/KRX link with US dollar/Korean won futures. Scheduled to launch on 26 July, the roll out means Eurex is the only venue that offers domestic and international investors access to the Korean market outside Korean trading hours.
The new FX contract will complement the KOSPI 200 Options, Mini-KOSPI Futures, and the recently launched KOSPI 200 Futures. Like the other Eurex/KRX link products, the futures contract is fully fungible with the corresponding contract listed at KRX. This means that global market participants may continue to trade Korean Won Futures at Eurex during core European and North American trading hours. Due to daily expiry, they result in a corresponding position at KRX prior to the KRX market opening.
The exchange group says following CFTC approval, this product will be available to US market participants upon launch.
“South Korea is one of the world’s leading exporting nations,” says Michael Peters, CEO of Eurex. “For financial institutions, corporates, and investors – whether in Asia, Europe or the US – this FX futures contract is a valuable tool to facilitate exposure to Korean won and manage currency risk around the clock.”
Sohn Byungdoo, chairman and CEO of KRX, adds, “The listing of USD/KRW futures on the KRX-Eurex link market, which are the first FX futures on the link, will provide investors with an opportunity to manage the foreign exchange risk on a 24-hour basis. Furthermore, the listing also carries great meaning in that it broadens the diversity of products offered on the KRX-Eurex link.”