Traders hail cash settlement for Korea 10-year bond futures

Three-year futures on Korean local-currency bonds are among the most actively traded bond futures in the world. Yet activity on 10-year futures has been virtually nil since it was introduced two years ago. That may now change. The Ministry of Strategy and Finance, the Financial Services Commission and the Korean stock exchange (KRX) have announced that, as of October, the 10-year futures contract can be settled with cash, not just with securities, as is the case today. Buy-side bond t…