​Tax, Smaller Multipliers Could Boost Mini-Kospi Products

A transfer tax to be levied on standard Kospi 200 futures and options that applies to retail investors could drive investors to switch into Kospi 200 mini-products in 2016, should the latter be exempt. The recently launched products, which have smaller multipliers compared to standard Kospi 200 derivatives, would allow traders of all size to participate. Opportunities will also be present for institutional investors and prop traders to arbitrage between mini futures and exchange-traded funds, mini-futures and standard options, and mini-options and standard options, among other strategies