[Breaking] KOSPI Plunges 5%, Sell-Side Sidecar Triggered for First Time in 7 Months

The KOSPI experienced a sharp decline of over 5% in early trading on November 5, triggering a temporary suspension of program sell orders (sidecar) for the first time in seven months.

According to the Korea Exchange, at approximately 9:46:15 a.m. on this day, the program sell orders were suspended for five minutes due to fluctuations in the KOSPI200 futures index.

A sell-side sidecar is triggered when the KOSPI200 futures (nearest contract month) fall by 5% or more from the previous day’s close and remain at that level for one minute. At the time of activation, the KOSPI200 futures index had dropped by 30.35 points (5.20%) to 552.80 compared to the previous closing price.

This is the first time in seven months that a KOSPI sell-side sidecar has been triggered, with the last occurrence on April 7. This year, the sidecar has been activated three times in total (two sell-side, one buy-side).

As of 10:09 a.m. on November 5, the KOSPI was trading at 3,910.83, down 5.12% from the previous day’s close.

Yonhap News Agency