Daily trading of equity derivatives plunges 51.1%

The daily trading volume of stock derivatives tumbled more than 50 percent on-year in the first 11 months of this year due to investors' wait-and-see attitude stemming from concern over the eurozone fiscal crisis and the U.S. fiscal cliff, the bourse operator said Sunday.

In the January-November period, the daily number of KOSPI 200 futures and options averaged 7.75 million contracts, down 51.1 percent from 15.84 million contracts a year earlier, according to the Korea Exchange (KRX).

The daily turnover of stock derivatives also slipped 27.1 percent from a year earlier to 55.28 trillion won (US$51.5 billion), according to the KRX.

The bourse operator attributed the plunge in derivatives trading to investors' worries over the protracted eurozone fiscal crisis and America's spending cuts and tax increases, which are scheduled to kick in early next year.

Also responsible were tougher regulations on stock options, the KRX said, adding the downturn in derivatives transactions will likely last for the time being due to concern over an economic slump at home and abroad.

The bourse operator, meanwhile, said the daily trading volume of stock futures and 10-year Treasury futures jumped 66.3 percent and 269.6 percent on-year, respectively, in the 11-month period.