Hong Kong Exchanges and Clearing Limited (HKEX) and Korea Exchange (KRX) have announced the signing of a non-binding letter of intent (LoI) to explore the cross-listing of their equity derivatives in each other’s market. The equity derivatives under consideration include, but are not limited to, stock index futures and options and single stock futures and options offered in local currency.
HKEX products would trade in Korean won at KRX, and KRX products would trade in Hong Kong dollars at HKEX.
Roger Lee, HKEX’s Head of Markets, and Kyungsoo Choi, Chief Executive Officer of KRX signed the LoI during a ceremony in Hong Kong hosted by HKEX (as pictured above). Other senior representatives of HKEX and KRX attended the ceremony and witnessed the signing.
HKEX Chief Executive Charles Li said:
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. 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.