KOSDAQ Buy-Side Sidecar Triggered... KOSDAQ150 Futures Surge 6%

As the KOSDAQ index surged, a temporary suspension of program buy orders (sidecar) was triggered on the 26th. This is the first time this measure has been implemented this year and the first time in nine months since April 10 of last year.

On the 6th, the KOSPI, KOSDAQ indices, and exchange rates are displayed on the status board in the dealing room of Hana Bank in Jung-gu, Seoul. Photo by Yonhap News

On this day, the KOSDAQ150 futures price rose by 6.29%, from the previous closing price of 1,669.50 to 1,774.60, and the spot index increased by 6.56%, from 1,657.10 to 1,765.95. This situation continued for one minute.

For five minutes from the time of activation, the effectiveness of program trading buy orders was suspended, and the sidecar was automatically lifted after five minutes had passed.

The sidecar system is designed to prevent sharp fluctuations in the futures market from affecting the spot market. A buy-side sidecar on the KOSDAQ is triggered when the KOSDAQ150 futures price rises by 6% or more compared to the base price and the KOSDAQ150 index rises by 3% or more, both sustained for one minute.