NEXTRADE (NXT), an alternative trading system (ATS), said on the 9th it will reduce the number of securities eligible for trading to 650 from 700. It cited a recent stock market rally that has increased trading volume and, at the same time, the transaction ratio.
The average daily trading volume of NEXTRADE (NXT) and the Korea Exchange (KRX) rose 41% from 1.675 billion shares in early Jan. to 2.362 billion shares at the end of Jan. this year.
Under the Financial Investment Services and Capital Markets Act Enforcement Decree, an alternative trading system's six-month average daily trading volume must not exceed 15% of the Korea Exchange (KRX)'s average daily trading volume, which has increased the compliance burden.
Accordingly, starting on the 12th, NEXTRADE (NXT) will exclude 50 stocks—mainly those with the highest trading volumes—from trade matching eligibility. Those stocks will be removed from trading eligibility through the end of June this year. NEXTRADE (NXT) plans to select new eligible securities for the third quarter at the end of June.
The stocks to be excluded this time include HD Hyundai Energy Solutions, HPSP, LG Display, LS Materials, GalaxiaMoneytree, Daedong, Mirae Asset Venture Investment, Woori Technology Investment, Jeju Semiconductor, HANA Micron, Harim Holdings, and Hanwha Life Insurance.
A NEXTRADE (NXT) official said, "We will closely monitor the daily trading volume ratio to comply with trading limits under the Financial Investment Services and Capital Markets Act, while striving to keep the list of trade-matching-eligible securities as stable as possible to minimize inconvenience for investors."