South Koreas remarkable Kospi 200 Option is a mould-breaking product, unlike any other in listed derivatives. Astonishingly, it is still growing fast. But having climbed to a new peak, the Korea Exchanges way forward could lie up or down. KRX is linking up with the worlds top exchanges, opening the prospect of yet more liquidity. But at the same time, Korea may impose a tax on derivatives trading. What would that do to the Kospis legendary retail demand? Colin Packham reports.
Despite its short history, Korea Exchange has enjoyed remarkable success since its inception as Daehan Stock Exchange in 1956. KRX does not have as rich a history of derivatives trading as the exchanges of Chicago, London or New York, but, by number of contracts traded, it is the largest exchange in the world.
Perhaps fittingly, it is based not in the capital Seoul, but in the city that embodies...