MidasTrade and the Korea Securities Depository (KSD) have launched a new global direct access network to enable Korean investors to trade US stocks in real-time.
The direct access network will provide Korean investors with immediate execution and confirmation of their US securities trades at a low cost, say the companies.
Midas Securities will provide Korean securities brokerage firms with a range of execution services including: multiple level quotes with integrated order execution to the Nasdaq Stock Market, the New York Stock Exchange, the American Stock Exchange and Electronic Communications Networks (ECNs); trade support; global network connectivity; and online trader resources.
KSD has recently signed a contract with the Bank of New York Clearing Services to provide clearing and custodial services.
The execution of trades between South Korea and the US is traditionally a slow and ineffective process, with trades sometimes taking more than seven days to clear. Many Korean investors also do not trade foreign securities because of expensive surcharges and extra commissions added to the cost of each transaction.
Brad Eckenweiler, president of MidasTrade, comments: "This is a major step in connecting investors and liquidity. Together we are bridging gaps and breaking the boundaries between South Korea and the North American equities markets."
Leading Investment and Securities Ltd. will be the first licensed securities firm to participate in the platform.