As the KOSDAQ index rose more than 4% in early trading on the 3rd, a buy-sidecar (suspension of the effectiveness of program-trading buy quotes) was triggered.

Employees work in the dealing room at Hana Bank in Jung District, Seoul, on the 3rd as a buy-sidecar is triggered by a sharp surge on the KOSDAQ. /Courtesy of Yonhap News

Korea Exchange (KRX) said it triggered a buy-sidecar on the KOSDAQ market at 10:28 a.m. that day. This is the 29th time a sidecar has been triggered on the KOSDAQ market. So far, buy-sidecars have been triggered 16 times and sell-sidecars 13 times.

At the time of the trigger, the KOSDAQ150 futures index was up 6.41% from the previous trading day at 1,257.30 points. The KOSDAQ150 index was 1,252.72 points, up 3.13% from the previous trading day.

The size of program-trading transactions posted a net buy of 85.9 billion won.

Meanwhile, the exchange explained it triggered the buy-sidecar after the KOSDAQ150 futures index rose 6% or more and the KOSDAQ150 index rose 3% or more from the previous day and the move persisted for one minute.

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