CFTC Staff Issues No-Action Letter to Korea Exchange Concerning the Offer or Sale of KOSPI and Mini KOSPI 200 Futures Contracts
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Release Number 9043-25
CFTC Staff Issues No-
Action Letter to Korea Exchange Concerning the Offer or Sale of KOSPI
and Mini KOSPI 200 Futures Contracts
February 04,
2025
WASHINGTON, D. C. — The Commodity Futures Trading
Commission’s Division of Market Oversight today issued a no-action
letter stating it will not recommend the CFTC take enforcement action
against Korea Exchange (KRX) for the offer or sale of Korea Composite
Stock Price Index (KOSPI) 200 Futures Contracts and Mini KOSPI 200
Futures Contracts to persons located within the United State while the
Commission’s review of KRX’s forthcoming request for certification of
the contracts under CFTC Regulation 30. 13 is pending. DMO issued
similar letters when the KOSPI 200 became a broad-based security index
in 2021 and 2022. [See CFTC Press Release Nos. 8464-21 and
8610-22]
The KOSPI 200 became a narrow-based security index in
February 2024. Futures contracts on narrow-based security indexes are
subject to joint CFTC and Securities and Exchange Commission
jurisdiction. Futures contracts on non-narrow-based (also known as
broad-based) security indexes are subject to exclusive CFTC
jurisdiction.
The KOSPI 200 is set to become a broad-based
security index on February 6, 2025, and the no-action position in
DMO’s letter will be effective on that date. -CFTC-