Financial firms' derivatives trading jumps 26 pct in Q1

SEOUL, July 11 (Yonhap) -- South Korean financial companies' derivatives trading jumped 26.3 percent on-year in the first quarter due mainly to increased transactions of stock-linked products, the financial regulator said Monday.
The total trading volume of derivatives such as stock futures and options reached 1.9 quadrillion won (US$1.8 trillion) in the January-March period, compared with 1.5 quadrillion won in the same period last year, according to the Financial Supervisory Service (FSS).
The on-year growth was mostly fueled by brokerages' increased transactions of stock-related options and futures, with the former coming to 1.2 quadrillion won in the cited period.
The FSS also noted the rise in currency forwards trading, boosted by robust exports of shipbuilders and other heavy industry companies.
In the first quarter, South Korea saw its exports reach $131.3 billion, up 30 percent from the previous year, due to increased shipments of cars, ships and steel products.
Meanwhile, securities firms accounted for the bulk of the total trading volume in the first quarter, carrying out 77.6 percent of the total transactions, while banks made up 93.9 percent of the outstanding contracts, the regulator said.
Brokerages tend to trade in the short term, while lenders generally hold their positions for a longer period.
As of end-March, local financial firms held 7,063 trillion won worth of derivatives contracts, up 8.1 percent from the same period last year, according to the FSS.
mil@yna.co.kr