On the 3rd, the KOSPI index surged just a day after the "Warsh shock," triggering a "buy-sidecar" that halts the effectiveness of program buy orders for five minutes.

A market board in the dealing room at Hana Bank's headquarters in Jung District, Seoul displays stock market figures on the morning of the 3rd as the KOSPI recovers the 5,000 level intraday. /Courtesy of News1

Korea Exchange (KRX) triggered the buy-sidecar on the Korea Exchange at 9:26:22 a.m. that day.

According to Korea Exchange (KRX), KOSPI200 futures rose more than 5% that day and the trend continued for more than 1 minute, suspending the effectiveness of program buy orders for five minutes. At the time of activation, the KOSPI200 futures index was 759.15, up 36.55 points (5.05%) from the previous closing price. At the moment the sidecar was triggered, the size of program trading transactions was 55.3 billion won.

A sell-sidecar on the KOSPI was triggered the previous day, and a buy-sidecar was triggered just one day later. The previous day, the KOSPI index fell 274.69 points (5.26%) to close at 4,949.67. U.S. President Donald Trump nominated Kevin Warsh, known as a "hawk," as the next chair of the Federal Reserve, sending global risk asset prices plunging across the board. The KOSDAQ index also fell more than 4% to end the session.

The KOSPI and KOSDAQ indexes rebounded in a day. As of 9:48 a.m. that day, the KOSPI index was up 4.08% (202.19 points) at 5,151.86 from the previous day.

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