Korea Exchange activates sidecar on KOSPI which halts sell orders for program trading for five minutes after KOSPI 200 futures declined 5%

The activation of the sidecar by the Korea Exchange indicates increased volatility in the KOSPI following a sharp drop in KOSPI 200 futures.

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Newsquawk headlinesUTC

[MARKET UPDATE] Risk assets extend on their declines with US equity futures at fresh session lows, while South Korea leads Asia lower with the KOSPI down 5%, while metal prices continues to slump with spot silver down 10%

PRE-MARKET INDIAN STOCKS NEWS: Indian benchmarks were pressured in a rare-budget session on Sunday following the announcement to raise the Securities Transaction Tax on futures and options trading

Korea Exchange activates sidecar on KOSPI which halts sell orders for program trading for five minutes after KOSPI 200 futures declined 5%

[MARKET ANALYSIS] Asia-Pac stocks mostly declined amid several recent bearish themes

[MARKET ANALYSIS] DXY marginally softened amid a partial government shutdown and ahead of an event-packed week

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Context

This measure aims to stabilize the market by temporarily halting sell orders during rapid declines, signaling that the exchange is concerned about potential panic selling. Traders should be mindful of this volatility, as it could translate into broader market implications across Asian equities.

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