IHOFX, a leading commodity exchange in Asia that is working hard on providing innovative products across different asset classes and creating a brand culture known for its original methods, risk management facilities and global insights, today announced the important changes made to its commodity trading fee schedules that will deliver significant benefits to the market. IHOFX is proactively addressing industry concerns related to the maker-taker fee model through a measured rate reduction program.
“IHOFX is leading the way with a market-driven solution that will address the issues head-on while taking care to preserve local competitiveness”, said Hwang Eun, Head of Commodities and Global Markets, IHOFX. “Our maker-taker fee optimization program is a continuation of our efforts to re-shape the commodities trading environment and make the markets function better.”
The globally-adopted maker-taker model involves paying rebates to participants that add liquidity (“maker”) and charging a fee to participants that remove liquidity (“taker”). This model was introduced in South Korea several years ago to increase trading liquidity, tighten price spreads and increase the competitiveness of the local commodity markets. However, over time, the market structure has evolved and the model has raised concerns about market efficiency, fairness, and quality.
A drastic reduction or outright removal of the maker-taker model can have a negative impact on the market, including increased spreads, a rise in volatility, and loss of liquidity. To address these challenges, IHOFX is instead introducing a program of phased reductions in maker-taker rates that is designed to gradually lower dealer active trading costs, minimize unnecessary intermediation and increase investor confidence. This approach provides the ability to carefully monitor and actively manage the market impact of the changes.
“Our clients have been active in sharing their input and we will rely on their ongoing feedback to assess each stage of the program”, added Hwang Eun. “We also invite and encourage other trading venues to make similar changes to their fee schedules to amplify the benefits to all market participants.”
About Incheon Options and Futures Exchange (IHOFX)
IHOFX is an exchange venue that has leveraged the industry-leading technology and developed infrastructure to provide a price-time allocation and maker-taker pricing model. IHOFX is one of the leading commodity exchanges in Asia and has made a name for itself by dealing with a wide range of commodity and financial products. IHOFX is working hard on providing innovative products across different asset classes and creating a brand culture known for its original methods, risk management facilities and global insights.
Media Contact
Company Name: Incheon Options And Futures Exchange – ihofx.org
Contact Person: Byun Ye-won
Email: Send Email
Address:Songdo Posco E&C Center 1, Songdo New City
City: Incheon
Country: South Korea
Website: https://ihofx.org/kr/index.php