As the night derivatives market marks its first anniversary, trading volume has surged more than sevenfold over the past year. Steady demand from investors seeking to respond to U.S. stock market movements and global events has driven rapid growth in trading activity.
According to the Korea Exchange, the average daily trading volume in the night derivatives market from June 1 to June 5 reached 101.81 trillion won. This represents an increase of approximately 635% compared to the average daily trading volume of 13.85 trillion won recorded shortly after the market opened in June of last year. The number of traded items has also significantly increased, with the average number of items traded daily rising from 3,046 last year to 9,351 this year, a jump of about 207%.
While the night derivatives market has traditionally been viewed as dominated by foreign investors, participation from individual investors has noticeably increased amid heightened market volatility. The night market is considered competitive as it allows investors to respond to U.S. market trends, international oil prices, exchange rates, and geopolitical factors even after the domestic market closes.
In fact, the average daily trading volume of individual investors in KOSPI 200 night futures surpassed 3 trillion won for the first time in February, reaching 3.25 trillion won. In March, it increased to 3.29 trillion won, then decreased to 2.37 trillion won in April, before rebounding to 3.06 trillion won in May. This month, it has maintained a level around 2.68 trillion won, which is about three times higher than the 915 billion won recorded in June of last year.
The night derivatives market, which officially opened on June 9 last year, has improved access for investors. Unlike the previous indirect method linked to the European derivatives exchange Eurex, trading can now be conducted solely with domestic derivatives accounts, eliminating the need for separate overseas accounts. The market features the same expiration structure and competitive fee system as the regular market.
Currently, a total of 10 products are traded, including KOSPI 200 futures and options, KOSDAQ 150 futures and options, U.S. dollar futures, and treasury futures. This diverse range of products serves as investment and hedging tools to respond to global variables that arise after the domestic market closes.
However, the exchange noted that the increase in trading volume should not be interpreted solely as market activation. The significant rise in the domestic stock market over the past year has also contributed to higher prices of underlying assets. A representative from the exchange stated, "The index level itself has risen significantly, which has expanded the absolute trading volume. However, it is reasonable to view the gradual increase in participation as investors become aware of the market's existence."
He added, "Given the nature of night trading, there is considerable participation from foreign investors looking to respond to overseas market movements. Expanding institutional participation is one of our future challenges," and emphasized that diversifying products and expanding the market base are long-term goals.
* This article has been translated by AI.
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