KOSPI and KOSDAQ Surge Trigger Paired Buy Sidecar Activation... "First Time Since June 2020"

On the 6th, the domestic stock market surged sharply, triggering buy-sidecars in both the KOSPI and KOSDAQ markets.

[Image source=Yonhap News]

The Korea Exchange announced that a buy-sidecar was triggered in the KOSPI market at 9:06 a.m. that day. The KOSPI 200 futures rose from the previous closing price of 330.45P to 347.20P, an increase of 16.75P (5.06%), and this was sustained for one minute. This is the first time a buy-sidecar has been triggered in the KOSPI since June 16, 2020.

At the same time, a buy-sidecar was also triggered in the KOSDAQ. The KOSDAQ 150 futures rose from 1136.00P to 1226.80P, up 90.80P (7.99%). The KOSDAQ 150 also recorded 1218.65P, up 65.16P (5.64%) from 1153.49P, sustained for one minute. This is the first time a KOSDAQ sidecar has been triggered in nine months, since November 6 of last year.

This is the first time since June 2020 that buy-sidecars have been triggered simultaneously in both the KOSPI and KOSDAQ markets.

A sidecar is a system introduced to temporarily suspend the effectiveness of program trading orders when the futures market fluctuates sharply, in order to mitigate the impact of program trading on the spot market.