Since the listing of the KOSPI 200 futures in May 1996, the derivatives market has grown to become one of the most important derivatives markets in the world. Meanwhile, the market has achieved a higher level of excellence in market operation and ensured a fair trading system and market management, and consequently stands as a dignified reference among derivatives markets. The brief history of the Korean Derivatives Market related to the products is as follows: Table 2.3: History of the Korean Derivatives Market May. 1996 KOSPI 200 futures quoteJul. 1997 KOSPI 200 Listed OptionsApr. 1999 US Dollar, CD interest rate, gold futures and US dollar options quoted in September. 1999 Quotation of KTB 3-year futures Jan. 2001 Kosdaq 50 Listed FuturesSep. 2001 KOSPI 200 Intercontractual month spreads listedDec. 2001 Kosdaq 50 Options ListedJan. 2002 Options on listed shares May. 2002 KTB 3-Year Futures Options ListedDec. 2002 MSB Futures listedAugust. Quotation of KTB 5-year futures of 2003Jan. 2005 Consolidated KRX launchedNov. 2005 Quotation of futures on the STARDic index. 2005 Kosdaq 50 Futures and Options Canceled May. Listed Yen Futures/Euro 2006 FuturesTable 2.3 (continued): History of the Korean Derivatives MarketDec. 2007 CD Interest Rate Futures, 3-Year KTB Futures Options DelistedFeb. KTB 10-Year Futures 2008 ListedSource: Korea Exchange (KRX), http://www.krx.co.kr/Many factors have contributed to the impressive growth of the Korean derivatives market. Some of the major contributing factors are: After the financial crisis of the late 1990s, the demand for risk management tools increased. Investors have effectively used products such as KOSPI 200 futures and options, KTB 3-year futures and USD futures to meet their hedging needs. : Korea Exchange (KRX), http://www.krx.co.kr/Works CitedBrorsen, BW, 1991, Futures Trading, Transaction Costs, and Stock Market Volatility, Journal of Futures Markets 11, 153-163.China Securities Regulatory Commission (CSRC) Annual Report 2008, CSRCCox, CC, 1976, Futures Trading and Market Information, Journal of Political Economy 84, 1215-1237Jae Ha Lee, February 2002, Index Arbitrage with KOSPI 200 FutureLeading Futures Market KRX, Korea ExchangeRoss, SA, 1989, Information and Volatility: The Arbitrage-Free Martingale Approach to Resolution Timing and Irrelevance, Journal of Finance 44, 1-17. Sung C. Bae, Taekho Kwon, and Jongwon Park, 2004, Futures Trading, Spot Market Volatility, and Market Efficiency: The Case of Korean Index Futures Markets, Journal of Futures Markets 24, 1195-1228