CFTC revokes certification for KOSPI futures?

Discussion in 'Index Futures' started by newbunch, Feb 18, 2024.

  1. newbunch

    newbunch

  2. RedDuke

    RedDuke

    This took place years ago.
     
  3. newbunch

    newbunch

    "02/15/2024"
    I've been trading it, so it couldn't have taken place years ago.
     
  4. RedDuke

    RedDuke

    I did not know. So essentially they allowed it back and not taken it away again. I traded it like 10 years back.

    PM me if you are interested in some interesting info on this market. We can chat over zoom.
     
  5. schizo

    schizo

    The CFTC never actually revoked the Kospi 200 Index Futures outright. However, there was a period where they were not available for trading in the US due to changes in the index classification. Here's the breakdown:

    The key factor is whether the Kospi 200 is considered a "broad-based" or "narrow-based" security index.

    • Broad-based: Subject to exclusive CFTC jurisdiction.
    • Narrow-based: Subject to joint CFTC and SEC jurisdiction.
    Timeline of events:

    • April 1, 2020: Kospi 200 became narrow-based.
    • CFTC revoked their no-action letter and the Commission withdrew its certification. This meant US traders couldn't trade the futures contracts unless they were qualified institutional investors (QIBs).
    • December 1, 2021: Kospi 200 became broad-based again.
    • CFTC re-certified the futures contracts for trading by all investors.
    • May 18, 2022: Kospi 200 became narrow-based again.
    • CFTC withdrew its existing certifications. Futures contracts became subject to joint CFTC and SEC regulation, meaning only QIBs could trade them in the US.
    Current situation:

    As of today, February 18, 2024, the Kospi 200 Index Futures are not available for trading by most US investors due to its narrow-based classification. Only QIBs are currently eligible to trade them.

    Here are some resources for further information:

     
    newbunch likes this.