The Korea Exchange will suspend night trading of derivatives for one day ahead of the Chuseok holiday. This measure aims to reduce the risk management burden on market participants, as night trading can expose them to prolonged risks.
The exchange announced on September 9 that it will halt night trading of derivatives scheduled from 6 p.m. on the 23rd to 6 a.m. the following day.
Night trading of derivatives is conducted in a manner that combines it with regular trading for settlement. Therefore, the night trading starting on the 23rd will be settled together with regular trading on the 28th.
However, conducting night trading just before a long holiday could expose those trades to market risks until regular trading resumes. The exchange explained that if prices fluctuate significantly during the holiday, the risk management burden on clients could increase due to margin calls, offsetting trades, or liquidity shortages.
This suspension applies to all products eligible for night trading on the KRX derivatives market. Among stock derivatives, it includes KOSPI 200, Mini KOSPI 200, and KOSDAQ 150 futures and options. KOSPI 200 weekly and KOSDAQ 150 weekly options are also included.
In the FICC derivatives market, night trading of U.S. dollar futures, 3-year treasury futures, and 10-year treasury futures will also be suspended.
The exchange stated, "Major Asian exchanges that have introduced night trading also implement measures such as suspending night trading the day before long holidays. We will actively support risk management for market participants by suspending night trading before long holiday periods."
* This article has been translated by AI.
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