Korea Investment & Securities analyzed that it is difficult to expect a significant increase in transaction volumes at the initial market unit stage of the alternative trading system (ATS) launch.
Yum Dong-chan, a researcher at Korea Investment & Securities, said, "Japan's alternative trading system (PTS) is most similar to the domestic alternative trading system (ATS)." He noted, "After 10 PTS were established in the 2000s, many closed down, and currently three are operating."
He further explained, "The transaction volume ratio for Japan's alternative trading system exceeded 11% for the first time in 2024, but during the first 10 years after the introduction of PTS, the transaction volume ratio did not exceed 1% even in Japan."
Research Institute Yum noted, "In South Korea, the transaction volume for the alternative trading system is capped at 15% overall and 30% by individual stock," and added that "initially, only 10 stocks will be traded on the ATS, but the target will gradually expand to about 800 stocks."
He remarked, "Despite the Japanese case, the introduction of the alternative trading system is positive," as "various positive effects, such as reduced exchange commission rates, the introduction of new systems, and extended trading hours, can be expected."
He emphasized, "It is difficult to expect significant effects from the beginning, but I believe it is a meaningful change in that it is establishing systems for the advancement of the capital market."
According to the Financial Supervisory Service, Next Trade (NTX), the first alternative trading system in South Korea, will launch on April 4. Next Trade will operate a pre-market (8 a.m. to 8:50 a.m.) and an after-market (3:30 p.m. to 8 p.m.) before and after regular trading.
To ensure stable establishment at the initial launch of the alternative trading system, the companies that have expressed their intent to participate will launch first, and then gradually increase the number of participating securities firms and traded stocks. On the day of the Next Trade launch, 15 securities firms expressed their intention to participate in the entire market.
The traded stocks will also start with 10 stocks with low volatility in the initial phase (week 1 to 2), increasing to 800 stocks by week 5.