Buy-side sidecar triggered amid sharp Kospi rally

A 5 percent-plus rally in the Kospi 200 futures briefly halted program buy orders Friday as South Korean stocks extended sharp gains.

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A screen in Hana Bank's trading room in central Seoul shows the Kospi at 7,500.87 points on July 10, up 208.96 points, or 2.87 percent, from the previous trading session.

A sharp rally in the Kospi triggered a trading curb, known locally as a sidecar, on Friday, temporarily halting program buy orders.

The buy-side curb was activated at 12:54 p.m., marking the 17th buy-side sidecar issued this year, according to the Korea Exchange.

A sidecar halts program trading when certain market indexes fluctuate beyond a designated threshold. A buy-side curb is triggered for the Kospi when the Kospi 200 futures price rises by 5 percent or more from the reference price and remains at that level for at least one minute. Once activated, it suspends trading of program buy orders for five minutes.

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At the time of activation, the Kospi 200 futures index stood at 1,240.15, up 60.60 points, or 5.13 percent, from the previous session's close.

As of Friday afternoon, the Kospi was up more than 5 percent while the Kosdaq had gained more than 6 percent.


BY JEONG HYE-JEONG [[email protected]]

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

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