A buy-sidecar was triggered during trading on the Kosdaq on Wednesday. The move followed sharp gains in the Kosdaq 150 futures price and the spot index.
The Korea Exchange disclosed it triggered a sidecar at 1:58:59 p.m. on the Kosdaq, suspending the effectiveness of program buy orders for 5 minutes.
According to the disclosure, at the time of activation the Kosdaq 150 futures price stood at 1,757.60 points, up 101.90 points, or 6.15 percent, from the previous close of 1,655.70.
A sidecar is a market-stabilisation device designed to ease the impact of price swings in the futures market on program trading in the cash market. When certain conditions are met, it suspends the effectiveness of program buy or sell orders for 5 minutes.
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Sangyeob Oh
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