On the 7th, the KOSPI index plummeted, triggering a temporary suspension of program sell orders (sidecar).
On the 7th, dealers are working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. Photo by Yonhap News
According to the Korea Exchange, at 9:12:11 a.m. that day, the effect of program sell orders was suspended for 5 minutes due to fluctuations in the KOSPI 200 futures index. At the time of activation, the KOSPI 200 futures index was 312.05, down 17.10 points (5.19%) from the previous trading day's closing price.
The sidecar is triggered when the KOSPI 200 futures index rises or falls by more than 5% and sustains that movement for 1 minute. In the KOSPI market, a sell sidecar was triggered on August 5 last year due to a sharp decline, and a buy sidecar was triggered the following day, August 6, due to a sharp rise.
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