On the 2nd, as the KOSPI opens with a steep drop, the KOSPI and KOSDAQ indexes appear on the dealing room board at Hana Bank in Jung-gu, Seoul. /Courtesy of Yonhap News

On the 2nd, as the domestic stock market plunged, a "sell-sidecar," which temporarily suspends the effectiveness of program sell quotes, was triggered in the KOSDAQ market following KOSPI.

Korea Exchange (KRX) said at 12:47 p.m. that a sell-sidecar was triggered in the KOSDAQ market.

This is the 17th sidecar in the KOSDAQ market this year. It is the sixth sell-sidecar this year.

A sidecar is a mechanism that stabilizes the market by suspending the effectiveness of program trade quotes for five minutes.

In the KOSDAQ market, it is triggered when the KOSDAQ150 futures price falls 6% or more from the previous trading day and the KOSDAQ150 cash index also drops 3% or more from the previous day for at least one minute.

At the time of the trigger, the KOSDAQ150 futures price was tallied at 1584.40, down 102.20 points (6.05%) from the previous trading day. The KOSDAQ150 cash index fell 98.98 points (5.91%) to 1575.37.

The KOSDAQ index opened at 904.53, down 24.82 points (2.67%) from the previous day. As of 1:32 p.m., KOSDAQ is trading at 878.02, down 51.33 points (5.52%) from the previous trading day.

Earlier in the KOSPI market, a sell-sidecar was triggered at 9:07 a.m. The KOSPI market's sidecar is structured to be triggered when the KOSPI200 futures price rises or falls 5% or more from the previous day's close for at least one minute.

When the sell-sidecar was triggered, the KOSPI200 futures index stood at 1255.94, down 80.92 points (6.05%) from the previous day.

KOSPI opened at 7933.10, down 370.31 points (4.46%) from the previous day, slipped to as low as 7723.57 intraday, rebounded, and is widening its losses again. As of 1:32 p.m., KOSPI is trading at 7872.37, down 431.04 points (5.19%) from the previous trading day.

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