After U.S. President Donald Trump's national address rapidly cooled hopes for an end to the war, the KOSPI and KOSDAQ plunged on the 2nd. As a result, sell-sidecar halts on sell orders were triggered in both markets.

This contrasts with the previous day, when buy-sidecars were triggered intraday in both the KOSPI and KOSDAQ on the back of end-of-war expectations.

As the KOSPI and KOSDAQ plunge, a sell-sidecar (temporary halt of program sell orders) is triggered in the afternoon on the 2nd at the main dealing room of Hana Bank in Jung-gu, Seoul. /Courtesy of News1

The Korea Exchange (KRX) said at 2:34 p.m. on the 2nd that it would trigger a sell-sidecar due to volatility in KOSDAQ150 futures prices and the KOSDAQ150 index.

The KOSDAQ sell-sidecar is a mechanism that halts program sell orders for five minutes to promote market stability. It applies when KOSDAQ150 futures prices and the KOSDAQ150 index fall for at least one minute by 6% or more and 3% or more, respectively, from the previous close.

This year, sidecars have been triggered eight times in the KOSDAQ market, combining buys and sells. At the time of activation that day, the scale of program trading transactions was tallied at 222.7 billion won.

At 2:46 p.m., a sell-sidecar was also triggered in the KOSPI market. A sell-sidecar is triggered when the KOSPI200 futures index falls by 5% or more from the previous trading day and the drop persists for one minute.

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