KOSPI and KOSDAQ Trigger Sell-Side Sidecars Amid Over 5% Plunge

Sell-side sidecars (temporary suspension of program sell orders) were triggered consecutively on both the KOSPI and KOSDAQ markets.

The KOSPI index started the day on a downward trend on the 8th, with the exchange rate, KOSPI, and KOSDAQ indices displayed on the status board at the dealing room of the Hana Bank headquarters in Jung-gu, Seoul. Photo by Dongjoo Yoon

According to the Korea Exchange on July 8, at 1:31:58 p.m., due to volatility in the KOSPI200 futures index, program sell orders on the KOSPI market were suspended for five minutes. At the time the sidecar was triggered, the KOSPI200 futures index was down 64.64 points (5.21%) from the previous day's closing, standing at 1,174.36. A sell-side sidecar on the KOSPI market is triggered when the KOSPI200 futures index drops by 5% or more and remains at that level for one minute.

On the KOSDAQ, a sell-side sidecar was triggered at 1:33:58 p.m. At the time, the KOSDAQ150 futures price had fallen by 92.50 points (6.31%) from the previous day's closing, reaching 1,372.60. The KOSDAQ150 spot index was down 99.09 points (6.76%), at 1,365.13. The KOSDAQ sell-side sidecar is triggered when the KOSDAQ150 futures price drops by 6% or more from the reference price and the KOSDAQ150 index falls by 3% or more compared to the previous trading day's final figure, both conditions being sustained for one minute simultaneously.

As of 1:50 p.m., the KOSPI was down 5.38% at 7,244.35, while the KOSDAQ was down 5.92% at 782.06.

This content was produced with the assistance of AI translation services.