As the KOSPI and KOSDAQ indexes plunged in the 5% range on the afternoon of the 8th, the Korea Exchange (KRX) consecutively triggered sell-sidecars (suspension of the effectiveness of sell quotes in program trading).
The exchange triggered a sell-sidecar on the stock market at 1:31 p.m. that day. It was the 17th sell-sidecar this year.
A sell-sidecar on the stock market is triggered when the KOSPI 200 futures index falls 5% or more and stays there for 1 minute. When a sell-sidecar is triggered, program-trading quotes are restricted for 5 minutes.
At the time of the trigger, the KOSPI 200 futures index was at 1,174.36, down 64.64 points (5.21%) from the previous close (1,239.00).
About two minutes later, at 1:33 p.m., a sell-sidecar was triggered on the KOSDAQ market. It was the seventh sell-sidecar on the KOSDAQ market this year.
At the time of the trigger, the KOSDAQ 150 futures price was 1,372.60, down 92.50 points (6.31%) from the previous close, and the KOSDAQ 150 cash index was 1,365.13, down 99.09 points (6.76%).
A KOSDAQ sell-sidecar is triggered when the KOSDAQ 150 futures price falls 6% or more from the reference price and the KOSDAQ 150 index falls 3% or more from the previous trading day's final figure, and both conditions persist simultaneously for 1 minute.