As the KOSPI index plunged more than 5% in early trading on the 16th, the Korea Exchange (KRX) triggered a sell-sidecar (temporary suspension of program sell orders). The KOSPI index opened with the 7,000 level breaking down.
The exchange triggered a sell-sidecar on the stock market at 9:10 a.m. that day. Through that day, the stock market had seen sell-sidecars triggered 19 times and buy-sidecars 18 times.
A sell-sidecar is a market stabilization mechanism that is triggered when the KOSPI 200 futures price remains down 5% or more from the reference price for at least one minute.
At the time of activation, the KOSPI 200 futures index was at 1,104.40 points, down 5.22% from the reference price of 1,165.32 points. Program trading volume reached 188.3 billion won.
This month, the domestic stock market has continued extreme volatility. The previous day, buy-sidecars were triggered on the stock market and the KOSDAQ market, but a day later sell-sidecars were triggered.