Exchange to Suspend Derivatives Night Trading on Sept. 23 Ahead of Chuseok Holiday

[Financial News] The Korea Exchange will suspend derivatives night trading for one day ahead of the extended Chuseok holiday.
According to the Korea Exchange on the 9th, night trading in derivatives scheduled from 6 p.m. on the 23rd to 6 a.m. on the 24th will be suspended. The suspension applies to all derivatives traded during the exchange’s night session.
Derivatives night trading is structured so that trades are cleared together with the regular session that opens immediately afterward. Accordingly, if night trading proceeded normally on the 23rd, those trades would be cleared together with the regular session on the 28th, after the Chuseok holiday.
The exchange decided to suspend trading because market participants’ positions could remain exposed to risk for an extended period across the long holiday. It explained that sharp price swings during the holiday could increase investors’ risk-management burdens due to margin calls, offsetting trades and insufficient liquidity.
The suspended products include futures and options on the KOSPI 200 Index, Mini KOSPI 200 and KOSDAQ 150 Index, as well as KOSPI 200 Index and KOSDAQ 150 Index weekly options. U.S. dollar futures and three-year and 10-year Treasury futures will also not be traded during the night session that day.
KRX has suspended night trading on the eve of extended holiday periods since introducing derivatives night trading in June last year. Major Asian exchanges, including those in Hong Kong and Taiwan, have implemented similar measures ahead of long holidays. KRX plans to continue supporting market participants’ risk management by suspending night trading on the eve of extended holiday periods.

[email protected] Lee Jeong-hwa Reporter