TRADING

The Leading Venue for Trading

 

 

General Trading Notes

Investors today have access to a wide range of futures markets that operate almost around the clock, providing them with ample opportunities to hedge their positions and execute trades. KBOFX, a leading financial organisation, recognises the importance of meeting the needs of its clients by offering trading sessions that align with the trading schedules of major international markets. By doing so, KBOFX enables investors to capitalize on market movements and make informed decisions even outside regular trading hours.

KBOFX has established General Trading Rules to ensure that all futures trading conducted on the exchange complies with relevant laws, regulations, and administrative rules. The primary objective of these rules is to protect the rights and interests of all parties involved while also promoting public welfare. It should be emphasized that these standards apply uniformly across every type of related activity organized by our platform. By complying with such requirements, participants can contribute towards an equitable and transparent trade setting which fosters stability, and market integrity and boosts investor confidence.

Trading Facilities

KBOFX offers exceptional futures trading venues and facilities, ensuring a seamless trading experience through our efficient order-matching system, trading seats, and communications systems. We prioritize the protection of trading data by maintaining both local and remote data backups. Our unwavering commitment to our members is demonstrated by our relentless efforts to provide exceptional trading opportunities and safeguards at the Exchange. We uphold the highest standards of professionalism, expertise, and integrity in all our operations.

The Trading System

KBOFX has carefully selected the innovative and state-of-the-art UniqTrader Technology™ as its designated trading platform, recognizing it as a leading-edge technological solution in the current market landscape. By leveraging this advanced system, KBOFX is able to deliver a modern, reliable, and efficient electronic trading experience to its users, facilitating seamless and cost-effective transactions that are both user-friendly and practical.

KBOFX’s platform, UniqTrader Technology™, is designed to handle the electronic execution, clearing, and settlement of all of its contracts. It offers a wide range of exchange-traded derivatives contracts for futures and options, including commodities, currencies, and indices. The UniqTrader Technology™ platform provides traders with various order forms, such as combination orders or spread orders. This allows traders to execute complex trading strategies and manage their positions effectively. The platform is also equipped with advanced risk management tools that help traders monitor their exposure to various market risks.

Placement and Execution of Orders

KBOFX provides various trading orders such as limit orders, market orders, cancellation orders, spread orders, and other types of orders. These orders are effective on the day they are placed. During the order submission window of a call auction and continuous auction hours, members can submit buy and sell orders. It is crucial to ensure that trading orders are within the price limit, as orders exceeding the price limit are not valid. Moreover, if a Member's Settlement Reserve falls below the minimum balance requirement set by the Exchange, their trading order for opening a position will be considered invalid.

Matching orders in a call auction is guided by the principle of maximizing volume. This implies that trades are carried out at a price that optimizes the trading volume for the session. Unlike a continuous auction, where a price-time priority system is employed to match buy and sell orders, all trades in a call auction are executed at the same price. The price-time priority system in a continuous auction automatically matches and executes a bid and an ask when the bid price is greater than or equal to the ask price.

Margin

Traders must adhere to the Exchange's essential margin requirements. Margin pertains to the stable and liquid securities or funds, including government bonds and standard warehouse receipts, that traders deposit based on trade settlement and performance guarantee regulations. Margin is classified into two types: Settlement Reserve and Trading Margin. The Settlement Reserve is the margin amount that is not currently utilized to maintain current contract positions, while the Trading Margin is the margin portion already in use to maintain current contract positions. Upon the completion of a trade, KBOFX obtains a Trading Margin at a designated percentage of the contract value or under the specified approach. The Trading Margin obligation may be modified by the KBOFX and will be specifically outlined in the comprehensive implementation regulations of the Exchange.

Transaction Settlement

Settlement is a crucial process, referring to the exchange of capital and securities between parties who have engaged in a trade. The process typically takes place on the agreed settlement date, which can vary depending on the type of financial instrument being traded. For stock traders, the T+2 model is commonly used, meaning that settlement occurs two business days after the transaction date. However, government bonds and options tend to follow the T+1 model, with settlement taking place just one business day after the transaction date. Forex transactions may have a T+1 settlement date, while currency trades may have a T+2 settlement date. In the case of futures, settlement involves marking-to-market accounts using the final closing price for the day.
All offshore investors need to be aware that there is a minimum holding period on all invested funds. If this minimum holding period is not fulfilled, all funds are subject to taxation.
All funds, invested and profited will be subject to a 35% taxation level if the funds are recalled by the investor within a period of six (6) months from the date the funds were invested.
When this minimum holding period on invested and profited funds of six (6) months is fulfilled, the funds will not be subjected to taxation.

Transaction Models

The Electronic Platform showcases transactions in two forms: quotation transactions and price inquiry transactions, both of which are inter-dealer transactions. Quotation transactions involve creating a quote for the customer without making a sale or providing product information. Traders must specify their bids and offers as either firm or non-firm quotes. On the other hand, price inquiry transactions involve a trader submitting price inquiries to multiple traders.

Automatic Order Matching & Block Trading

To trade KBOFX's range of products, investors can place orders through their brokers who must be KBOFX members to gain access to the Exchange trading system. The Exchange supports two types of trading methods: automatic order matching and block trading, both of which provide investors with a flexible and efficient way to manage their trades. Automatic order matching involves matching buy and sell orders automatically based on predefined criteria such as price and quantity, while block trading allows investors to trade large volumes of securities privately outside the open market.

Omnibus Account

KBOFX allows the use of omnibus accounts, which means that a single account can hold multiple sub-accounts. This is possible despite the requirement that each order placed on the central trading system includes the client's account number. For foreign institutional investors who trade on behalf of their clients, KBOFX offers a convenient and compliant platform that adheres to international standards. It is worth noting that there are no trading restrictions on KBOFX for foreign investors, and there is no need for special or qualified foreign institutional investors' accounts.



MEMBERSHIP SEARCH

Copyright® KBOFX