South Korea's bourse operator activates sell-side sidecar for KOSPI
Quick Look
- South Korea's bourse operator activated a sell-side sidecar for the KOSPI index on Tuesday as it slid sharply, losing 3.73 percent.
- Program trading was suspended for five minutes after the KOSPI 200 Futures index dropped over 5 percent.
AI-generated summary
Why It Matters
A sell-side sidecar is a trading curb activated when a stock index or futures contract experiences a significant price drop, temporarily halting program trading to stabilize the market.
SEOUL, June 23 (Yonhap) -- South Korea's bourse operator on Tuesday activated a sell-side sidecar for the benchmark Korea Composite Stock Price Index (KOSPI) as the index slid sharply.
Program trading for the KOSPI was suspended for five minutes around 11:40 a.m., according to the Korea Exchange (KRX).
The KOSPI sharply lost ground as investors dumped big-cap technology shares, tracking an overnight slump in U.S. techs.
The KOSPI shed 340.22 points, or 3.73 percent, to 8,774.33 as of 11:54 a.m.
A sell-side sidecar is triggered when the KOSPI 200 Futures index decreases 5 percent or more for at least one minute.
Open Questions
- Will the KOSPI recover?
- What is the extent of the US tech stock slump's impact?
