Mon, 02 Oct 2023

SEOUL, June 8 (Xinhua) -- South Korea's financial regulator said Thursday that it will open key stock derivative markets 15 minutes earlier than the current opening hours beginning late next month in a bid to reduce stock price volatility.

The derivative markets of the KOSPI 200, the KOSDAQ 150 and the KRX 300 will begin to open at 8:45 a.m. on July 31, according to the Financial Services Commission, the Financial Supervisory Service and the bourse operator Korea Exchange.

Currently, the country's stock derivative markets, launched in 1996, open at 9:00 a.m. when the stock markets open.

Unlike overseas stock derivative markets, which begin trading ahead of the equity market trading to allow investors to predict the future prices of underlying assets, the local markets failed to enjoy the price discovery function amid the simultaneous opening, the joint statement said.

The earlier opening of the derivative markets would help weaken stock price volatility and raise the trading practices to global standards, the statement noted.

The regular trading hours for derivatives will be extended by 15 minutes to between 8:45 a.m. and 3:45 p.m., while the pre-market single-price trading hours will be cut by 15 minutes to between 8:30 a.m. and 8:45 a.m..

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