Comments on: South Korea: ADR Pairs Trade http://stableboyselections.com/2009/08/05/south-korea-adr-arbitrage/ Esse Quam Videri Thu, 02 Feb 2012 02:01:27 +0000 hourly 1 http://wordpress.com/ By: Cogitator http://stableboyselections.com/2009/08/05/south-korea-adr-arbitrage/#comment-733 Thu, 06 Aug 2009 06:52:25 +0000 http://stableboyselections.com/?p=2024#comment-733 The KRX requires short sellers to open a margin account with at least KRW 1 million, or roughly US $800. Typically, Korean broker dealers establish their own minimum threshold in excess of this requirement. For instance, Coutts requires US $500,000 in equity.

The high number of relative value arbitrage opportunities suggests that short selling, let alone outright arbitrage, is not very popular in Korea. It is an open and exciting field.

]]> By: Eric http://stableboyselections.com/2009/08/05/south-korea-adr-arbitrage/#comment-731 Wed, 05 Aug 2009 22:11:18 +0000 http://stableboyselections.com/?p=2024#comment-731 “Since some Asian markets have short-selling restrictions, the ‘pairs trading’ strategy is restricted to buying the underlying shares and selling the ADRs.” Does South Korea prohibit short selling?

How does one go about buying South Korean securities?

]]>