A new futures product tied to the MSCI Korea Index is being introduced to the market, providing international investors with an efficient and cost-effective means to access the Korean equity landscape. The trading for this new offering is set to commence on July 14, 2025.
This initiative marks a significant development as it is presently the only derivatives exchange outside of Korea that gives traders access to a Korean equity index. As of mid-2025, Korea is a significant player in the MSCI Emerging Markets Index, contributing 10.73% of its value—positioning it as the fourth-largest allocation among 24 emerging market countries represented in the index.
The launch of futures on the MSCI Korea Index is a direct outcome of a newly established clearing link with the Korea Exchange (KRX). Previously, trading primarily centered around KOSPI derivatives, which tend to be utilized mainly by retail investors and market makers. In contrast, the new futures aim to address the specific needs of international institutional investors, which include asset managers and banks that seek to gain US-dollar-denominated exposure to the Korean market while adhering to the MSCI framework, thereby optimizing trading and margin efficiencies.
An executive involved in product design expressed that this new launch completes their MSCI derivatives offering, embracing a comprehensive strategy to encompass both developed and emerging markets globally. By providing a unified methodology, similar contract specifications, and a consolidated clearing house, the aim is to enhance margin efficiency for investors operating across various markets.
A representative of MSCI expressed satisfaction regarding the collaboration, deeming the launch of the futures contract a significant move towards capturing the performance of large- and mid-cap segments of the Korean market. This index suite is acknowledged as a widely accepted benchmark for institutional investors seeking Korean equity exposure. The introduction of these index-linked instruments illustrates the importance of transparent, rules-based index methodologies in aiding informed decision-making in global investments.
At present, the offerings encompass a total of 146 MSCI futures contracts, with a notable portion of trading volume stemming from the Asia-Pacific region. This trend is also evident in open interest statistics, where approximately 45% of the total open interest, valued at EUR 135 billion, pertains to Asian underlying assets. This focus on Asian markets is expected to bolster participation in Korean equities while driving further integration within the global financial system.
Overall, the introduction of futures on the MSCI Korea Index is set to enhance accessibility to the Korean equity market for a diverse array of international investors, thereby facilitating a broader scope of investment opportunities aligned with global market indices.