Hong Kong’s HKEX Explores Cross-Listing Derivatives with Korea’s KRX

A non-binding letter of intent (LOI) was signed this Tuesday in Asia by Hong Kong Exchanges and Clearing (HKEX) and Korea Exchange (KRX), as they are set to explore the cross-listing of equity derivatives in each other’s markets, as per an official statement.

The deal was inked during a ceremony in Hong Kong today, signed by both HKEX’s Head of Markets, Roger Lee, and KRX CEO Kyungsoo Choi.

The LOI serves as a first step in considering the equity derivatives which so far include stock index futures and options, and single stock futures and options offering in local currency, aimed to make the products more fungible across borders.

Cross-listing of our equity derivatives would create new trading and Risk Management opportunities for investors in Hong Kong and Korea.

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Cross-border fungibility

If cross-listing of the instruments is achieved, KRX products would trade in Hong Kong dollars at HKEX in Hong Kong, and HKEX products would trade in Korean won at KRX in Korea.

The cross-listing between KRX and HKEX will open up significant opportunities, as the trading hours largely overlap.

Financial market synergies including cross-border initiatives between governments, regulators, and public and private companies - including exchanges - continue, amid what appears to be inevitable globalization aimed to make economies more integrated and efficient overall.

"Equity derivatives are an important strength of HKEX and we look forward to exploring closer collaboration with KRX, one of Asia's leading exchange companies," said HKEX Chief Executive Charles Li, commenting in a corporate statement. "Cross-listing of our equity derivatives would create new trading and risk management opportunities for investors in Hong Kong and Korea."

"The cross-listing between KRX and HKEX will open up significant opportunities, as the trading hours largely overlap. Investors will be able to trade the cross-listed products in the same way that they transact local products," said Kyungsoo Choi, Chief Executive Officer of KRX.

source: HKEX HKEX Head of Markets Roger Lee (left) and KRX Chief Executive Officer Kyungsoo Choi (right) sign a non-binding LOI to explore cross listing of equity derivatives at a ceremony witnessed by HKEX’s Co-heads of Market Development Division Romnesh Lamba and Li Gang, Managing Director of Client & Marketing Services Tae Yoo, KRX Global Derivatives Market Managing Director Baeyong Kim and KRX International Relations Vice President Minsuk Lee. — source: HKEX
HKEX Head of Markets Roger Lee (left) and KRX Chief Executive Officer Kyungsoo Choi (right) sign a non-binding LOI to explore cross listing of equity derivatives at a ceremony witnessed by HKEX’s Co-heads of Market Development Division Romnesh Lamba and Li Gang, Managing Director of Client & Marketing Services Tae Yoo, KRX Global Derivatives Market Managing Director Baeyong Kim and KRX International Relations Vice President Minsuk Lee.

The deal was inked during a ceremony in Hong Kong today, signed by both HKEX’s Head of Markets, Roger Lee, and KRX CEO Kyungsoo Choi.

Cross-listing of our equity derivatives would create new trading and Risk Management opportunities for investors in Hong Kong and Korea.

The new world of online trading, fintech and marketing – register now - for the Finance Magnates Tel Aviv Conference, June 29th 2016.

Cross-border fungibility

If cross-listing of the instruments is achieved, KRX products would trade in Hong Kong dollars at HKEX in Hong Kong, and HKEX products would trade in Korean won at KRX in Korea.