On the 9th, the Korea Exchange announced that it has amended the trading rules for listed securities (KOSPI) and KOSDAQ. Starting from the 14th, the exchange will launch an aftermarket to respond to liquidity competition with major U.S. exchanges and expand investment opportunities for investors.
Previously, trading was conducted in single-price auctions every 10 minutes from 4 p.m. to 6 p.m. after the regular market closed. Going forward, trading will be conducted via a connection-based method from 4 p.m. to 8 p.m.
The exchange had originally planned to open both pre-market and aftermarket by the end of June this year but adjusted the schedule to launch only the aftermarket on the 14th of this month after reflecting industry opinions.
Accordingly, the exchange explained that it has prepared for system establishment by operating a simulated market under conditions identical to the actual market for 23 weeks.
However, considering market volatility, ETFs (exchange-traded funds) and ETNs (exchange-traded notes) have been excluded from the list of tradable instruments in the aftermarket. The exchange also plans to limit order types to limit orders and apply the same price fluctuation limits as the regular market, including VI (volatility mitigation devices).
A representative of the exchange stated, "We expect that launching the aftermarket will be the first step toward elevating investor accessibility and enhancing market competitiveness, enabling our stock market to leap to a global level." The representative added, "Investors will be able to make swift investment decisions by immediately reflecting information generated after the regular market closes into prices through extended trading hours."
The representative further noted, "To continuously strengthen the competitiveness of Korea's stock market infrastructure, the exchange plans to monitor time extension trends among global exchanges and consider phased extensions of trading hours in the future."
in STOCK
