The consolidation of the market infrastructure in Korea made further progress with news that the Korea Stock Price Index (KOSPI) Futures and Options business will move from the Korea Stock Exchange (KSE) to the Korea Futures Exchange (KOFEX) from 1 January 1 2004. This was announced by the Ministry of Finance and Economy (MOFE) on Friday.
Under the deal, KOFEX will pay the KSE 70 per cent of revenues earned by KOSPI Futures and Options in return for the use of KSE’s KOSPI-200 Index. This arrangement will continue until there is a fully merged entity, probably in 2005. The KSE will support KOFEX with futures market expertise and a new computer system.