Buy-side sidecar triggered on Kosdaq after index surges

A buy-side sidecar was triggered on the Kosdaq on Monday after the benchmark index surged, temporarily halting program buy orders to curb excessive market volatility.

A sidecar halts program trading when certain market indexes fluctuate beyond a designated threshold.

The sidecar was issued at 9:28 a.m. and suspended program buy orders on the index for 5 minutes following sharp gains in Kosdaq 150 futures price and the Kosdaq 150 index, according to the Korea Exchange.

At the time, Kosdaq 150 futures had risen to 1,650.5, up 96.2 points, or 6.18 percent, from the previous trading session's close. The Kosdaq 150 index had risen to 1,636.63, up 95.86 points, or 6.22 percent.

It marked the first buy-side sidecar on the Kosdaq since June 11, about 12 trading days.

A buy-side curb for the Kosdaq is activated when the Kosdaq 150 futures price rises at least 6 percent from its reference price and the Kosdaq 150 index gains at least 3 percent from the previous trading day's close for at least one minute.

BY HYEON YE-SEUL [[email protected]]