Sell-side sidecar triggered as Kospi plunges

A sell-side trading curb, known locally as a sidecar, was triggered on the Kospi on Monday after the index plunged, temporarily suspending program sell orders.

The sell-side trading curb was activated on the Kospi at 10:34 a.m., marking the 18th sell-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 sell-side curb is triggered for the Kospi when the Kospi 200 futures price falls 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 sell orders for five minutes.

At the time of activation, the Kospi 200 futures index stood at 1,142.16, down 63.14 points, or 5.23 percent, from the previous session's close.

The Kospi was trading at 7,162.21 at the time, down 4.20 percent from the previous session.

BY KIM EUN-BIN [[email protected]]