Alternative trading system (ATS) NEXTRADE (NXT) will additionally halt transactions in 20 stocks. This is to comply with the regulation under the Enforcement Decree of the Financial Investment Services and Capital Markets Act that the six-month average daily volume on an alternative trading system must not exceed 15% of the Korea Exchange (KRX) volume over the same period.
According to NEXTRADE (NXT) on the 3rd, a total of 20 stocks—11 on the main board and 9 on the KOSDAQ market—will be temporarily excluded from execution eligibility from Nov. 5 to Dec. 30. Accordingly, the number of NEXTRADE (NXT) transaction stocks will decrease to about 630.
On the main board, transactions will be halted for 11 stocks: Taihan Cable & Solution, Mirae Asset Securities, ISU Chemical, Kakao, POSCO DX, Korea Electric Power Corporation, HANMI Semiconductor, Hanon Systems, Hanwha Systems, Hyundai E&C, and FOOSUNG Co.
On the KOSDAQ market, transactions will be restricted for nine stocks, including Koh Young, Motive Link, SUNGWOO HITECH, SOLiD, Ananti, ASTERASYS, EcoPro, POSCO M-TECH, and HANA Micron.
Earlier, NEXTRADE (NXT) began proactively managing limits by sequentially excluding 145 stocks from eligibility starting in Aug. this year. However, as the KOSPI has risen more than 70% from the start of the year and the "bull frenzy" continued, trading volume surged, making volume management difficult.
Meanwhile, the Financial Services Commission (FSC) said in early Sep. that, regarding NEXTRADE (NXT)'s volume limits, it will keep the market-wide cap (15% of the Korea Exchange (KRX)) but defer the security-level cap (30% of the Korea Exchange (KRX)) for up to one year while preparing additional limit management measures.