Korea Exchange Issues Buy-Side Sidecar for KOSPI and KOSDAQ Following Market Surge
The South Korean stock market experienced a temporary trading halt on Tuesday after the Korea Exchange (KRX) implemented a buy-side sidecar in response to a significant market increase.
Program trading on the benchmark Korea Composite Stock Price Index (KOSPI) was suspended for five minutes at 9:06 a.m. KST, according to the KRX.
At the time of the suspension, the KOSPI 200 Futures index had surged by 82.6 points, representing a 10.84 percent increase, reaching a value of 844.
This marked the first instance of a buy-side sidecar being activated since February 3rd.
A buy-side sidecar mechanism is triggered when the KOSPI 200 Futures index experiences a rise of 5 percent or more that is sustained for at least one minute, designed to curb excessive market volatility.
