STANDARD TERMS AND CONDITIONS FOR FUTURES & OPTIONS TRADING

Transcription

1 [ENGLISH TRANSLATION] 1 STANDARD TERMS AND CONDITIONS FOR FUTURES & OPTIONS TRADING Article 1 (Purpose) CHAPTER 1 GENERAL PROVISIONS The purpose of these Standard Terms And Conditions for Futures & Options Trading is to set out the basic terms for futures and options trading through futures trading brokers in the futures market, pursuant to Article 43(2) of the Futures Trading Act (the Act ), Article 11-3 of the Enforcement Decree of the Act, Article 47 of the Regulation on Supervision of the Futures Business, and Article 3 of the Futures Market Brokerage Contract Rules of the Exchange (the Futures Market Brokerage Contract Rules ). Article 2 (Legal Compliance) In engaging in futures and options trading, customers and futures trading brokers shall comply with all applicable laws and regulations. Article 3 (Customer s Right to Information on Applicable Laws and Regulations) A customer has the right to obtain information and explanation on applicable laws and regulations regarding futures and options trading from futures trading brokers, and futures trading brokers have a duty to faithfully provide such information and explanation. Article 4 (Investment Based on Own Educated Judgment) Customers shall read the Risk Disclosure Statement for Futures & Options Trading and the Information Memorandum for Futures & Options Trading as provided by futures trading brokers and, with sufficient knowledge thereof, engage in futures and options trading based on their own judgment and at their own risk. Article 5 (Orders) (1) Orders shall be placed by writing, telephone, telegraph, fax transmission and 1 Please note that the Korean version will be prevailing over any other translations if there is any dispute over interpretation of the terms and conditions hereof. 1

2 other similar means or by electronic mail or other similar electronic means. (2) To prove the placement and content of orders, futures trading brokers may record communication by utilizing a system that records the time of acknowledgment of an order or by other means. Article 6 (Designation of Clearing Member) In the event the customer s futures trading broker is not a member of the Exchange, the customer may appoint a member of the Exchange that is contracted to execute orders as his or her designated broker to handle orders between Exchange members. In the event the customer s futures trading broker is a member of the Exchange, the customer may appoint a clearing member of the Exchange that is contracted to make settlements as his or her designated clearing broker to settle between members of the Exchange. Article 7 (Rejection of Orders) (1) The following orders are rejected by futures trading brokers: 1. order for KOSPI 200 Futures trading, Star Index Futures trading, KOSPI 200 Futures Spread trading, Star Index Futures Spread trading, KOSPI 200 Option trading, and Stock Option trading made by a customer who has not deposited a preliminary margin; 2. order that requires additional margin (in order to be executed) made by a customer who has not deposited the additional margin or has not settled. However, a futures trading broker may elect to accept multiple orders made at the same time or consecutively, taking into account the possibility of execution, as long as they do not increase the customer s margin; 3. order that exceeds the limit on quantity of net open interest under Article 265 of the Futures Market Business Regulation of the Exchange (the Futures Market Business Regulation ); 4. order beyond the price limit or order in violation of the Futures Market Brokerage Contract Rules and the Futures Market Business Regulation; 5. order placed by Eligible Institutional Investor who has not deposited the post-trading customer margin; 6. order relating to KOSPI 200 Futures trading, Star Index Futures trading, KOSPI 200 Futures Spread trading, Star Index Futures Spread trading, KOSPI 200 Option trading, and Stock Option trading that does not comply with customer margin account, post-trading customer margin account and post-trading customer margin discount account; or order from a posttrading customer margin discount account that did not pay customer margin applicable to post-trading customer margin general account and did not submit proof of arbitrage or hedge trading; and 7. other orders not permitted under the laws and regulations relating to futures trading. (2) In calculating the net open interest or sell/buy orders under paragraph (1), 2

3 and subparagraph (3) the futures trading broker shall add up any known open interest or sell/buy orders in the customer s accounts with another futures trading broker. (3) A futures trading broker may refuse to accept orders if it is deemed necessary for the public interest, protection of customers or stabilization of market order, or if acceptance of the order is inappropriate in light of the customer s credit or financial standing. (4) In the event a futures trading broker rejects an order pursuant to paragraphs (1) and (3), the broker shall state the reason on the order slip, electronic order slip or any other document stating the order and immediately notify the customer of the rejection. Article 8 (Notice) (1) The futures trading broker shall promptly notify the customer of any executed order, unless the customer has given a sealed or signed written waiver to the notice. (2) The futures trading broker shall report to customers who have participated in trading in a given month the details of their monthly trading and their monthend balance by the 20th day (if the 20th day is a holiday or Saturday, by the next trading day) of the following month, as prescribed by the Financial Supervisory Commission. To customers who have not traded for a half-year, the futures trading broker shall report their balance as of the end of the halfyear by the 20th day (if the 20th day is a holiday or Saturday, by the next trading day) after the end of the half-year, as prescribed by the Financial Supervisory Commission. Such reports shall be sent by document, telephone, telegraph, fax transmission or other similar means or electronic mail or other similar electronic means. (3) The futures trading broker need not make the report under paragraph (2) in each of the following cases: 1. if a customer has waived the notice under paragraph (2) by a sealed or signed writing; 2. if the monthly report and balance statement or the semi-annual balance statement mailed to a customer has been returned more than three consecutive times, and the futures trading broker has made information on that customer s account available at its branch or office, so that it can be promptly given to the customer upon request; and 3. if the deposit in an account that has not been traded for a half-year is assessed to be less than KRW 100,000, and the futures trading broker has made information on that customer s balance as of the end of the half-year available at its branch or office, so that it can be promptly given to the customer upon request. 3

4 (4) The futures trading broker s mailing or ing of a statement of trading and balance amount to the customer s designated address (office address in the case of corporation) shall be construed as notice within the meaning of Paragraphs 1 and 2 above. (5) For customers who order by means of the computer or other similar electronic communication, the future trading broker s notice of the customer s monthly trading details and account balance through the computer network or other means of electronic communication in a manner previously notified to customer shall be construed as notice within the meaning of Paragraph (2) if the customer can get access to the content of the notice any time. (6) The futures trading broker may collect the costs and expenses of the notice from the customer. Article 9 (Objection) (1) Any objection to the notice or report shall be made within 10 trading days from the day of dispatch of the notice or report, and the absence of any objection within that period is construed as approval of the notice or report. (2) If actual delivery is made and the delivered commodity is defective or likely to be defective, the customer who took the delivery may raise issue with the futures trading broker within seven days from the final settlement date. Article 10 (Management of Substitute Securities) (1) The futures trading broker may entrust the Korea Securities Depository to manage the substitute securities deposited by the customer. (2) With respect to the deposited substitute securities, any newly issued securities through bonus issue, right issue or stock dividend, shall be deemed to be additionally deposited by the customer as substitute securities. Article 11 (Restriction on Use of Substitute Securities) (1) The futures trading broker may use the substitute securities that the customer has deposited as customer margin or Exchange member s margin with the prior written consent of the customer. (2) It is construed as an approval by the customer under paragraph (1) if the customer submits a written statement to the futures trading broker with the following: Customer agrees that the futures trading broker may deposit the current or future substitute securities deposited as customer margin with the Exchange or 4

5 as Exchange member s margin with the clearing member. Article 12 (Replacement of Substitute Securities) (1) Defective securities or securities issued by the customer shall not be accepted as substitute securities. (2) The customer shall promptly replace all defective securities he or she has deposited with the securities without any defect. Article 13 (Credit Upon Sale of Substitute Securities) In the event the futures trading broker sells the substitute securities deposited by a customer, the broker shall credit the amount received from the sale to the customer s futures and options account, after deducting all costs and expenses and commissions. Article 14 (Provision of Collateral) (1) The customer agrees that the futures trading broker may, to the extent necessary for the customer s futures and options trading, provide or deposit the customer s deposited assets as security with the Exchange, any overseas futures market, any other futures trading brokerage firm, a person engaging in futures business overseas or a foreign exchange bank. (2) The customer acknowledges and agrees that the deposited assets provided as security or deposited pursuant to paragraph (1) may be disposed of or lost at another s discretion, in the event of a fault attributable to the customer. (3) The customer acknowledges that the assets deposited with the futures trading broker is not protected under the Depositor Protection Act, and any claim for return of the deposited assets or damages may be made only against the futures trading broker. Article 15 (Brokerage Commission) (1) Upon execution of order, final settlement, notice of exercise, or grant of rights, the customer shall pay brokerage commission to the futures trading broker at the rate and time and in the amount and manner as determined by the futures trading broker ( Brokerage Commission Standards ). (2) The futures trading broker shall publish the Brokerage Commission Standards under paragraph (1) or any changes thereto in advance. Article 16 (Allocation of Loss and Profits in the Customer s Cash Balance) Loss and profits of the customer s cash deposit (including cash arising from customer s transactions) shall be allocated pursuant to separate rules, and the remainder shall be 5

6 allocated to the futures trading broker. Article 17 (Consolidation into Cash Account) The futures trading broker may consolidate the customer s accounts into a separate cash account if there are no open interest and the customer has not traded for the last six months during which cash balance has been KRW 100,000 or less. Article 18 (Transfer and Pledge of Passbook or Card) The customer may not transfer or pledge any passbook or card issued by the futures trading broker to others. Article 19 (Verification and Protection of Customer Information) The futures trading broker shall keep confidential customer information acquired in the course of business, such as the customers personal information and information on the customer s orders and financial state, except where required to disclose pursuant to a request duly made under the relevant law. However, the futures trading broker may, pursuant to applicable laws, provide or make available customer information to the Korea Futures Association, the Exchange or other futures trading brokerage firms, if the customer has disrupted market order, defaulted on debts, or if his or her notes and checks are suspended from transaction. And, in these cases, it is construed that the customer hereby agrees to such disclosure. Article 20 (Automatic Transfer to Futures/Options Account Upon Liquidation of Non-Cash Deposits) The futures trading broker shall automatically transfer any liquidated securities, indentures, general commodity and financial products deposited as margin by a customer to the customer s futures and options account with the broker upon liquidation. Article 21 (Restriction on Discretionary Futures Trading and Prohibition of Guaranteeing Profit) (1) If a customer engages a futures trading broker to establish a futures position, the customer may give discretion to futures trading broker in determining the quantity, price and timing of sale and purchase, but the customer shall determine the products and the type of order. (2) The futures trading broker who has been given discretion in futures and options trading as set forth in paragraph (1) ( Discretionary Futures Trading ) shall exercise fiduciary care and may not engage in each of the following acts: 1. solicit or accept Discretionary Futures Trading contrary to the principle of investment based on customer s own educated judgment and responsibility; 2. enter into too many contracts compared to the customer s purpose and 6

7 amount of deposit; and 3. engage in Discretionary Futures Trading for its own benefit or the benefit of a third party. (3) The futures trading broker shall not promise any return on investment or guarantee the principal. Article 22 (Management of Customers Assets) The futures trading broker shall manage the customers assets separate from its own assets and shall not use them for any person other than the customer. Article 23 (Indemnification) The futures trading broker shall not be liable for damages suffered by the customer due to each of the following cases: 1. any reason attributable to the customer; 2. delay or incapability (in execution of contract, receipt, payment, deposit, custody and return of contract ) caused by acts of God, war, disturbances, or similar inevitable causes. Article 24 (Notice of Amendment of the Standard Terms) (1) In the event the futures trading broker wishes to amend these standard terms and contracts, if the amendment is unfavorable to the customers, the futures trading broker shall notify customers of the amendment by writing, telephone, telegraph, fax transmission or other similar means or electronic mail or other similar electronic means, and if the amendment is not unfavorable to the customers, publish the amendment at the head office, branch offices and other offices, as well as on its website for at least 30 days. (2) Any objection to the notification shall be raised within 10 trading days from the time notice was given, and absence of objection within the foregoing period shall be deemed approval of the amendment. Article 25 (Notice of Change in Information Stated on the Application Form for Opening Futures/Options Account) The customer shall promptly notify the futures trading broker of any change in his or her address, telephone number or other contact information, and any change in the name, address and telephone number of the customer s agent, if any, and any change in other information stated on the application form for opening futures/options accounts. CHAPTER 2 KOREA TREASURY BOND (3 OR 5 YEAR) FUTURES AND OTHERS 7

8 Article 26 (Applicable Scope) The provisions of this chapter shall apply to the futures trading described in subparagraph 1 and the options trading described in subparagraph 2: 1. US Dollar futures, CD interest rate futures, gold futures, three-year Korea treasury bond futures, KOSDAQ 50 Futures, monetary stabilization bonds interest rate futures, five-year Korea treasury bond futures and other futures specified in Article 22, subparagraph 1 of the Futures Market Brokerage Contract Rules; and 2. US Dollar Option, KOSDAQ 50 Option, three-year Korea treasury bond futures option, and other options specified in Article 22, subparagraph 2 of the Futures Market Brokerage Contract Rules. Article 27 (Deposit and Withdrawal of Customer Margin) (1) In the event of placing orders or exercising one s call or put option on the futures (including exercise under article 32(2)), the customer shall pre-deposit with the futures trading broker the customer margin in cash or, substitute securities instead of cash, or in foreign currency within the meaning of Article 18(4) of the Futures Market Brokerage Regulation of the Exchange Rules and Article 16 of its enforcement rules. (2) Notwithstanding Paragraph (1) above, an Eligible Institutional Investor must deposit more than the amount of customer margin to be calculated after trading by the time of the same day set by the futures trading broker as post-trading customer margin. (3) The futures trading broker shall keep and manage the deposited customer s assets separate from its own assets. (4) The customer may withdraw any amount in cash, substitute securities or foreign currency that was deposited in excess of the requisite amount of margin. (5) The futures trading broker may apply different customer margins depending on the credit rating of the customer. (6) The futures trading broker may determine the proportion of the substitute securities permitted as the customer margin. Article 28 (Transfer of Open interests) (1) A customer may apply to a futures trading broker for transfer of open interest stating each of the following in writing: 1. open interests to be transferred; 8

9 2. customer s assets to be transferred; 3. the futures trading broker to whom open interest is to be transferred and the customer s account with that futures trading broker; and 4. any other matter deemed necessary by the futures trading broker. (2) The futures trading broker may reject the application for transfer of open interest under paragraph (1), if there is a risk that the transfer of the customer s trust assets pursuant to the transfer of his or her open interest will result in a default in settlement. Article 29 (Margin Call or Additional Deposit of Settlement Payment) (1) The customer shall deposit with the futures trading broker additional customer margin or settlement payment by the time requested by the futures trading broker in each of the following cases: 1. the customer s margin account balance less the settlement variation as of close of trading is less than the maintenance margin requirement. If the customer is an Eligible Institutional Investor depositing post-trading customer margin under Article 27 Paragraph (2), this provision shall apply only to the futures and option account where no trading has occurred (including transactions that only reduce net open interests). 2. the cash balance per account is less than the amount of net payment needed for the next trading day. 3. the futures trading broker determines it necessary to deposit emergency margin with the Exchange. 4. the futures trading broker determines it necessary to increase the customer s settlement capability because of the customer s lowered credit rating, or if the futures trading broker determines that there is a possibility of a settlement default because of the customer s insolvency, court receivership, composition or application for bankruptcy and deterioration of credit standing. (2) Request for additional deposit of customer margin or settlement payment under paragraph (1) above shall be sent to the address designated by the customer by writing, telephone, telegraph, fax transmission or other similar means or electronic mail or other similar electronic means. Article 30 (Default in Payment) (1) In the event a customer fails to pay additional margin or fails to settle, or an Eligible Institutional Investor fails to deposit the post-trading customer margin, the futures trading broker may, with fiduciary care, liquidate the customer s open interest or dispose of the deposited substitute securities or foreign currency. (2) In the event of liquidation of open interests pursuant to Paragraph (1), such 9

10 liquidation shall be by limit order at the following prices according to Article 13(2) of the Futures Market Business Regulation, provided that due to the customer s request, trading is carried out during single-price trading hours, liquidation shall depend on the market circumstances. 1. In the event of sale, the best quotation and consecutive 9 prices decreasing by one tick; 2. In the event of purchase, the best quotation and consecutive 9 prices increasing by one tick. (3) The futures trading broker may charge the customer for any shortages after liquidation of open interest or disposal of substitute securities or foreign currency under paragraph (1). (4) The futures trading broker may charge the customer for any cost or expense incurred by the broker due to the customer s default. Article 31 (Default Interest) (1) If the futures trading broker deposits the customer margin or the settlement payment in place of the customer, because the customer failed to pay within a prescribed period, or if the customer fails to pay brokerage commission to the futures trading broker, the customer shall pay default interest at the rate determined by the futures trading broker. (2) If the futures trading broker changes the default interest rate under paragraph (1), the broker shall post a notice of the change at its office for at least 7 days, individually notify the customers who are paying default interests, and notify other customers individually when sending the notice under Article 8(2). (3) Outstanding claims owed by the customer shall be recovered and applied in the order of cost of disposition, default interest, and outstanding principal. Article 32 (Notice of Exercise) (1) To exercise an option, the customer shall send an exercise notice stating the type and number of option to be exercised to the futures trading broker. (2) In-the-money option that has profit after deducting the brokerage commission and exercise expenses shall be deemed exercised even without an exercise notice from the customer by close of notice period of the last trading day, unless the customer has expressly notified his or her intent not to exercise. Article 33 (Actual Delivery) (1) A customer holding net short open interest who wishes to make actual delivery shall deliver the commodity to the futures trading broker by the time before 10

11 noon of the last settlement day as designated by the futures trading broker. (2) If the customer deposits in advance the commodity to be delivered, the customer shall bear the storage fees and other costs incurred until the last settlement date. Article 34 (Gold Futures: Settlement by Delivery) (1) The customer shall close out his or her position by the last trading day and make final settlement of gold futures by delivering his or her net position to the warehouse designated by the Exchange. (2) The futures trading broker may provide customer information to the Korea Securities Depository to open a gold futures account for the customer, and the customer hereby consent to such disclosure. (3) The customer shall deposit the gold into the customer s gold futures account by the time before noon of the last trading day as designated by the futures trading broker. (4) With respect to settlement by delivery, the customer shall not make and take delivery at the same time. Article 35 (Advance Deposit of Delivery Payment or Commodity to be Delivered) (1) If the futures trading broker determines that the customer may default in making or taking delivery, the futures trading broker may demand the customer to advance deposit of the delivery payment or the commodity to be delivered before the last settlement day. (2) If the customer does not respond to the request for advance deposit, the futures trading broker may at any time without notice to the customer dispose of the customer s open interest on the relevant contract at a limited price pursuant to Article 30 Paragraph (2). Article 36 (Liability for Delivery) In the event the futures trading broker settles the customer s account by delivery, if the futures trading broker received payment that would account for the commodity according to Article 74 of the Futures Market Business Regulation, the futures trading broker may pay the customer that amount instead of making physical delivery of the commodity. Article 37 (Applicable Scope) CHAPTER 3 KOSPI 200 FUTURES AND OTHERS 11

12 The provisions of this chapter shall apply to the futures under subparagraph 1 and the options under subparagraph 2: 1. KOSPI 200 Futures, Star Index Futures, KOSPI 200 Futures Spread, Star Index Futures Spread and other futures specified in Article 51(1)1 of the Futures Market Brokerage Contract Rules. 2. KOSPI 200 Option, Stock Options, and other options specified in Article 51(1)2 of the Futures Market Brokerage Contract Rules. Article 38 (Deposit of Customer Margin) (1) A customer (meaning a customer who has opened a futures/options account with the futures trading broker) who does not have open interest (within the meaning of Article 37(1)) shall make advance deposit of cash, substitute securities or foreign currency in the amount set by the futures trading broker or more as preliminary margin. (2) Open interest under paragraph (1) shall remain outstanding even after the open interest is canceled due to liquidation or on the last trading day, until the time limit for clearing pursuant to Article 71 of the Futures Market Brokerage Contract Regulation of the Exchange has expired. Article 39 (Deposit, Payment and Allocation of Customer Margin) (1) In the event of placing orders, the customer shall deposit with the futures trading broker the customer margin set by the futures trading broker in cash, or substitute securities instead of cash, or foreign currency. (2) Notwithstanding Paragraph (1), an Eligible Institutional Investor must deposit more than the amount of customer margin to be calculated after trading by the time of the same day set by the futures trading broker as post-trading customer margin. (3) If the customer s margin account balance exceeds the customer margin or the cash deposit exceeds the cash customer margin, the futures trading broker may pay the excess amount to the customer or credit such amount to the customer margin to be deposited by the customer. Article 40 (Margin Call) (1) The customer (in the event the customer is subject to Article 39(2), the customer who has not executed any transaction that day) shall deposit additional customer margin if the customer s margin account balance or cash deposit after close of trading is less than the amount set by the futures trading broker. 12

13 (2) In the event a customer is required to deposit additional customer margin under paragraph (1), the futures trading broker shall promptly notify the customer in the manner specified by the customer in advance. (3) The additional deposit of customer margin under paragraphs (1) and (2) shall be made by the time set by the futures trading broker before noon of the next trading day from the day the shortage occurred (if that day is a holiday, the next trading day). If, however, the customer liquidates his position before noon, thereby satisfying the margin requirement under Article 39, paragraphs (1) and (2), the additional margin shall be deemed to have been deposited. (4) Notwithstanding paragraph (3), the customer shall deposit the customer margin if the Exchange changes the date of margin call or the due date for additional deposit of customer margin, or if the futures trading broker advances the additional deposit due date, because, based on the customer s investment purpose, experience, status of assets and income, credit rating, status of open interest, or market conditions, it determines that there is a risk of default by the customer. Article 41 Deleted < > Article 42 (Default in Deposit and Settlement) (1) If a customer fails to pay additional customer margin or settlement payment, or an Eligible Institutional Investor fails to deposit the post-trading customer margin, the futures trading broker may: 1. liquidate the customer s open interest; 2. sell the substitute securities or foreign currency deposited as customer margin; 3. Deleted < > 4. Deleted < > (2) The trading under Paragraph (1) shall be at the following prices: 1. Limit order for open interests (in case of multiple-price individual auctions, five consecutive prices in time order pursuant to Article 231(1)3 of the Futures Market Business Regulation): a. Deleted < >; b. Deleted < > c. Deleted < >. 2. Market order for sale and purchase of listed shares (in the event of singleprice individual auction, the quotation offered at the auction); 13

14 3. For sale of shares listed on the KOSDAQ market, the quotation within the price limit of the basis price of that day (in the event of single-price individual auction, the quotation offered at the auction); 4. For sale of listed bonds, the basis rate of return separately published by the securities company designated by the futures trading broker. (3) The customer shall pay to futures trading broker any shortage still remaining after executing orders according to paragraph (1). (4) The futures trading broker may charge default interest on outstanding unpaid settlement amount for the period of default. (5) The futures trading broker may charge the customer for loss suff

15 miscalculation of the KOSPI 200 index or KOSDAQ 50 index or Star Index without their willful misconduct or gross negligence. Article 46 (Change of Settlement Terms) (1) The Exchange may change the margins or settlement conditions in the event of an act of God, war, disruption, sudden change in economic circumstances or other inevitable causes or if it is deemed necessary for market control, and the customer and the futures trading broker shall comply with the Exchange s decision. (2) The futures trading broker shall promptly notify the customer of any change in settlement terms, customer margin rate, preliminary margin and other matters materially affecting rights and obligations of customers and shall post a notice of such change at the head office, branch office and any other offices for at least seven days. Article 47 (Dispute Resolution) A dispute between the customer and the futures trading broker may be submitted to the customer service department of the futures trading broker or to the Financial Supervisory Service or the Exchange. Article 48 (Miscellaneous) (1) Matters not specified in these Standard Terms and Conditions shall be decided by applicable laws and regulations, failing which, the matter shall be decided according to general business practice. (2) Any dispute arising in connection with these Standard Terms and Conditions shall be subject to the jurisdiction of the district court at the place of the head office of the futures trading broker. Article 1 (Effective Date) ADDENDA These Standard Terms and Conditions shall become effective as of May 2, 2005, except for matters relating to foreign currency in Articles 27, 30, 38 and 39, which shall become effective from the date set by the relevant laws and regulations. Article 2 (Exemption for Trading Members of the Exchange) Articles 9(2), 26 (excluding KOSDAQ 50 Futures and KOSDAQ 50 Options), 32 and 33 through 47 shall not be applicable to securities companies that are trading members of the Exchange. 15

16 Article 3 (Transient Provisions) If the futures trading broker has allowed the transactions under Articles 26 and 37(1) to be conducted on separate futures/option accounts, the agreement between the customer and the futures trading broker executed before the effective date of these Standard Terms and Conditions shall control. Article 1 (Effective Date) ADDENDA These Standard Terms and Conditions shall become effective as of October 17, These Standard Terms and Conditions shall become effective as of November 10, Article 2 (Interim Measures for the KOSDAQ 50 Futures and KOSDAQ 50 Options) After the effective date of these Standard Terms and Conditions, trading in KOSDAQ 50 futures and KOSDAQ 50 Options shall be governed by the previous Standard Terms and Conditions until there remains no open interests of KOSDAQ 50 futures and KOSDAQ 50 Options at the close of trading in the relevant contract months. 16