Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

Korea Stock Exchange KOSPI 200 / Event-Driven

<ul>
<li>KRX notified local brokerages last week about allowing market orders for single stock futures (SSF) from April. Currently, 192 SSFs are listed.</li>
<li>Anticipating short-term effects, heightened frequency and impact of erroneous orders may cause spot market confusion. KRX plans real-time bid disclosure for SSFs to prevent price distortions.</li>
<li>Nonetheless, we will likely observe SSF price volatility surges. Real-time bid exposure could exacerbate volatility due to premature information revelation. Preemptive position setups considering these factors are advised.</li>
</ul>


KRX notified local brokerages last week about allowing market orders for single stock futures (SSF) from April. Currently, 192 SSFs are listed.
Anticipating short-term effects, heightened frequency and impact of erroneous orders may cause spot market confusion. KRX plans real-time bid disclosure for SSFs to prevent price distortions.
Nonetheless, we will likely observe SSF price volatility surges. Real-time bid exposure could exacerbate volatility due to premature information revelation. Preemptive position setups considering these factors are advised.


KRX Introduces Market Orders for Single Stock Futures: Potential Trading Impacts

<ul>
<li>The effective date, required by law to start six months post-promulgation, suggests implementation around July this year.</li>
<li>Enforcement decrees and regulations, under the Financial Services Commission's purview, must be confirmed before the effective date (within six months post-promulgation). The announcement is likely in early to mid-March.</li>
<li>Expecting the amendment, there may be a pre-July surge in block deals as major shareholders expedite plans, creating assertive market activity in the first half with potential trading opportunities.</li>
</ul>


The effective date, required by law to start six months post-promulgation, suggests implementation around July this year.
Enforcement decrees and regulations, under the Financial Services Commission's purview, must be confirmed before the effective date (within six months post-promulgation). The announcement is likely in early to mid-March.
Expecting the amendment, there may be a pre-July surge in block deals as major shareholders expedite plans, creating assertive market activity in the first half with potential trading opportunities.


A Comprehensive Update on Implementation of Block Deals Pre-Disclosure in Korea

Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

<ul>
<li>The <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 INDEX</a> is correcting after a long multi-week rally. Currently down for 2 weeks (to be confirmed this Friday at close), it's becoming OVERSOLD.</li>
<li>There is a risk of a large slide during this week, so LONG trades should be taken with a careful, hedged approach, but the LONG reversal is pending...</li>
<li>The price area between 345 and 334 is where the index could stop its pullback and reverse.</li>
</ul>


The KOSPI 200 INDEX is correcting after a long multi-week rally. Currently down for 2 weeks (to be confirmed this Friday at close), it's becoming OVERSOLD.
There is a risk of a large slide during this week, so LONG trades should be taken with a careful, hedged approach, but the LONG reversal is pending...
The price area between 345 and 334 is where the index could stop its pullback and reverse.


EQD | KOSPI 200 Readying for LONG Reversal

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Samsung Electronics Pref Shares / Event-Driven

<ul>
<li>Over the last year, the discount of <a href="https://www.smartkarma.com/entities/samsung-electronics-pref-shares" target="_blank" data-smartkarma-citation="entities:23591:1" rel="noopener">Samsung Electronics Pref Shares (005935 KS)</a> to <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> has increased from 5% to 17%.</li>
<li>The preferred shares have adequate liquidity, a large issue market cap, and now trade at a much higher dividend yield. A special dividend will further increase the dividend yield differential.</li>
<li>Breaking from history, the preferred shares discount has continued to increase as the stock has moved higher. With the preferred shares trading near its widest discount, that could change.</li>
</ul>


Over the last year, the discount of Samsung Electronics Pref Shares (005935 KS) to Samsung Electronics (005930 KS) has increased from 5% to 17%.
The preferred shares have adequate liquidity, a large issue market cap, and now trade at a much higher dividend yield. A special dividend will further increase the dividend yield differential.
Breaking from history, the preferred shares discount has continued to increase as the stock has moved higher. With the preferred shares trading near its widest discount, that could change.


Samsung Electronics: Prefs Need to Catch Up

<ul>
<li>The <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)</a> has been (mildly) falling for 4 weeks, it may be now ready to resume its multi-month uptrend.</li>
<li>Friday July 7th would be a good time to enter this LONG trade at support prices between 337 and 333 (ideal range; it's riskier below 333).</li>
<li>Hedge your bets in case the market keeps falling more next week and the following (it shouldn't... but it can).</li>
</ul>


The Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY) has been (mildly) falling for 4 weeks, it may be now ready to resume its multi-month uptrend.
Friday July 7th would be a good time to enter this LONG trade at support prices between 337 and 333 (ideal range; it's riskier below 333).
Hedge your bets in case the market keeps falling more next week and the following (it shouldn't... but it can).


EQD | KOSPI 200 Index WEEKLY: Time to Go LONG?

South Korea

The KOSPI 200 Index is a capitalization-weighted index of 200 Korean stocks which make up 93% of the total market value of the Korea Stock Exchange. The index was developed with a base value of 100 as of January 3, 1990.

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

KRX Introduces Market Orders for Single Stock Futures: Potential Trading Impacts

This post investigates KRX's plans to introduce market orders for single stock futures in Korea and looks into potential impacts from a trading...

Sanghyun Park

A Comprehensive Update on Implementation of Block Deals Pre-Disclosure in Korea

This post delivers a thorough and insightful update on the current status and progress of the block deals pre-disclosure system in Korea.

Sanghyun Park

EQD | KOSPI 200 Readying for LONG Reversal

The KOSPI 200 INDEX is correcting after a multi-week rally, but it's getting oversold. There is a risk of a large slide, LONG trades should be...

Nico Rosti

Samsung Electronics: Prefs Need to Catch Up

Samsung Electronics preferred shares have a large market cap, are liquid, and offer a higher div yield compared to the ordinary shares. With the...

Brian Freitas

EQD | KOSPI 200 Index WEEKLY: Time to Go LONG?

Analysis of the KOSPI 200 WEEKLY support levels for a high-probability LONG trade on Friday July 7th, a potentially highly profitable opportunity...

Nico Rosti

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

KRX Introduces Market Orders for Single Stock Futures: Potential Trading Impacts

This post investigates KRX's plans to introduce market orders for single stock futures in Korea and looks into potential impacts from a trading...

Sanghyun Park

A Comprehensive Update on Implementation of Block Deals Pre-Disclosure in Korea

This post delivers a thorough and insightful update on the current status and progress of the block deals pre-disclosure system in Korea.

Sanghyun Park

EQD | KOSPI 200 Readying for LONG Reversal

​The KOSPI 200 INDEX is correcting after a multi-week rally, but it's getting oversold. There is a risk of a large slide, LONG trades should be...

Nico Rosti

Samsung Electronics: Prefs Need to Catch Up

Samsung Electronics preferred shares have a large market cap, are liquid, and offer a higher div yield compared to the ordinary shares. With the...

Brian Freitas

EQD | KOSPI 200 Index WEEKLY: Time to Go LONG?

Analysis of the KOSPI 200 WEEKLY support levels for a high-probability LONG trade on Friday July 7th, a potentially highly profitable opportunity...

Nico Rosti

The KOSPI 200 INDEX is correcting after a multi-week rally, but it's getting oversold. There is a risk of a large slide, LONG trades should be...