Korea Exchange (KRX) signed a contract to jointly develop indices with Cboe Global Markets’ affiliate Cboe Global Indices (Cboe) in Chicago, IL USA in the afternoon of Monday, April 24.

Cboe Global Markets is a leading global exchange operator, providing trading solutions and products across multiple asset classes including derivatives, equities, FX and digital assets. CGI is a global index provider of more than 900 indices, including the Cboe Volatility Index® (VIX®).

The purpose of this contract is to develop advanced strategic indices based on Korean derivatives, as the investment demand for strategic index products has increased due to the recent increase of market uncertainty.

Under the contract, CGI will provide methodologies for the calculation of two derivative strategy indices, and KRX will calculate the indices by applying the methodologies to Korean derivatives, including KOSPI 200 options.

With this contract, the parties plan to first develop a strategic index using KOSPI 200 options, seeking to reflect an investor’s strategy that is designed to produce stable mid- to long-term returns.

At the signing ceremony, Ki-Kyung Kim, President of KRX and Head of Management Strategy, said “Through this collaboration, KRX will – 2 – continue to provide advanced derivative indices tailored to various investment strategies to the market, while promoting the commercialization of KRX’s representative indices, including overseas listing of ETFs, in overseas markets.”

In addition, Cathy Clay, Executive Vice President of Cboe Global Markets, said “We are delighted to work with KRX on the development of these innovative indices that we believe will be useful tools for the Korean investment community. We look forward to building on this foundation and collaborating on additional initiatives in the future.”

Last year, KRX developed theme, ESG, and other indices in collaboration with global index providers such as S&P Dow Jones Indices and FactSet. As evidenced by KRX’s latest collaborative effort with Cboe, KRX plans to further expand its relationships with overseas Exchanges and index providers to create the latest cutting-edge indices and enter overseas markets.

Source: KRX