The Necessity to Activate Long-Term ETD Derivatives in Korea = The Necessity to Activate Long-Term ETD Derivatives in Korea

다국어 초록 (Multilingual Abstract)

This paper aims to provide the necessity to activate long-term ETD derivatives whose maturity of an underlying asset is much longer. In the aging era, low-interest rates, low economic growth, the investment demand for long-term financial products and its hedging demand have steadily increased. Unfortunately, long-term ETD derivatives do not trade in Korea, and we present political suggestions to invigorate long-term ETD derivatives based on overseas cases and empirical analysis. Specifically, we suggest the necessity to activate ETF options, long-term KTB bond futures and options, and long-term VKOSPI future and options. The introduction of those long-term ETD derivatives not only contribute to providing long-term investment and hedging vehicles but also reduce market inefficiencies in the Korean industry of ETFs, bonds, and structured products.