On the morning of the 7th, the KOSPI, KOSDAQ, and the won–dollar exchange rate display on the electronic board in the dealing room at Hana Bank in Jung District, Seoul. According to Korea Exchange (KRX), the KOSPI opens at 7,919.20, down 132.13 points (1.64%) from the previous session. /Courtesy of News1

As the KOSPI index fell more than 5% during morning trading on the 7th, the Korea Exchange (KRX) triggered a sell-sidecar (suspension of the effectiveness of sell quotes in program trading).

The exchange triggered a sell-sidecar on the stock market at 10:23 a.m. that day. It was the 32nd sidecar this year. So far, sell-sidecars have been triggered 16 times and buy-sidecars 16 times.

At the time the sidecar was triggered, the KOSPI 200 futures index was down 5.12% from the previous trading day at 1,227.32 points. At 10:23 a.m., the scale of program trading transactions reached 1.1856 trillion won.

On the stock market, a sidecar is a system that restricts program trading quotes for five minutes if the KOSPI 200 futures price rises or falls by 5% or more from the previous closing price for one minute. In a surge, buy quotes are temporarily suspended; in a plunge, sell quotes are temporarily suspended.

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