Mini Gold Futures to be listed on KRX

Mini Gold Futures to be listed on KRX

Having obtained the approval of the Financial Services Commission on the amendment of the Derivatives Market Business Regulation of the Korea Exchange (“KRX”), dated June 23, 2010, the KRX is preparing the listing of Mini Gold Futures in August 2010. During the next two months, the KRX and member securities and futures companies will finalize the development and testing of trading system for the product.

Mini Gold Futures, whose trading unit is 1/10 of that of the existing Gold Futures launched in 1999, is the first mini-sized futures contract to be introduced in Korea.

Trading unit of Mini Gold Futures is 100g of refined gold with purity of 99.99%. Trading hours is 09:00~15:15 from Monday to Friday and the same hours applies on the last trading day. Last trading day is the third Wednesday of each settlement month and T+2 settlement scheme applies. Final settlement is made by cash and final settlement price is determined by converting the London Gold AM Fixing Price into price per gram and UK Pound into Korean Won. Also, position limit of 3,000 contracts is set to prevent the risks of settlement default and unfair trading.