Daily BriefsSouth Korea

Daily Brief South Korea: Korea Stock Exchange KOSPI 200 and more

In today’s briefing:

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


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

By Sanghyun Park

  • 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.

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