Washington, DC — The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) announced today that it will not recommend that the Commission take enforcement action against Korea Exchange, Inc. (KRX) with respect to the offer or sale of Korea Composite Stock Price Index (KOSPI) 200 Futures Contracts and Mini KOSPI 200 Futures Contracts (collectively, the Contracts) to persons located within the U.S. while the Commission’s review of KRX’s forthcoming request for certification of the Contracts under CFTC Regulation 30.13 is pending. The letter will be effective on December 1, 2021.

The KOSPI 200 became a narrow-based security index in 2020. Futures contracts based on narrow-based security indexes are subject to joint CFTC and Securities and Exchange Commission jurisdiction. Products based on non-narrow-based (also known as broad-based) security indexes, by contrast, are subject to exclusive CFTC jurisdiction.

The KOSPI 200 is set to transition to a broad-based security index on December 1, 2021. KRX has noted that a lag may exist between when the KOSPI 200 index fully transitions to a broad-based security index and when KRX secures certification of the Contracts pursuant to Commission Regulation 30.13. DMO will not recommend that the Commission take enforcement action against KRX with respect to the offer or sale of the Contracts to persons located within the U.S. while KRX’s request for certification is pending.