Korean exchange halts program trading after KOSPI fall — Korea Herald

In South Korea, exchange operator Korea Exchange (KRX) activated a sell-side sidecar for the benchmark KOSPI index due to its sharp decline. Program trading in shares listed on KOSPI was suspended for five minutes at 10:16 a.m. local time.

KOSPI decline

After opening down 1.82%, the KOSPI index lost 265.65 points, or 4.67%. As of 10:16 a.m., it had fallen to 5,418.15 points.

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As Korea Herald reports, the index was under pressure following the Democratic Party's victory in the U.S. midterm elections. This sparked market concerns about a possible tightening of regulations on data centers for artificial intelligence.

Conditions for a sidecar

A sell-side sidecar is triggered when the KOSPI 200 futures index falls by at least 5% and remains at that level for at least one minute. After the mechanism is activated, program trading in shares included in the KOSPI listing is temporarily halted.