Overnight Dollar Futures Fall 60% Below Average on First Day of 24-Hour Spot FX Trading

According to Korea Exchange, overnight dollar futures trading on July 6, the first day of 24-hour spot foreign exchange market operations in South Korea, recorded 9,386 contracts worth 143.6 billion won. This volume fell significantly short of the daily average of 15,684 contracts seen since night trading resumed last June, representing a 60% decline. Market participants attributed the sluggish performance to lower liquidity compared to offshore non-deliverable forwards (NDF). Traders noted that while 24-hour spot FX trading improves arbitrage conditions, the lack of liquidity providers in dollar futures during night hours limits trading activity.
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