Korea Exchange to Launch 4-to-8 p.m. After-Market Stock Session on Sept. 14
Summary
- Korea Exchange said it will launch an after-market operating for four hours from 4 p.m. to 8 p.m. starting Sept. 14.
- The launch of the after-market will end the existing after-hours single-price trading session that ran from 4 p.m. to 6 p.m., while hours for after-hours block and basket trading will be extended to 8 p.m.
- The after-market will cover KOSPI- and Kosdaq-listed stocks and depositary receipts (DRs), and will apply a price band of 30% above or below the previous day's close, volatility interruption mechanisms, and a T+2 settlement cycle.
Forecast Trend Report by Period
Stock trading in South Korea will be available until 8 p.m. from mid-September.
Korea Exchange said on Sept. 9 that it will launch an after-market stock session on Sept. 14, operating for four hours from 4 p.m. to 8 p.m. The move follows the Financial Services Commission's approval of revisions to operating rules for the KOSPI and Kosdaq markets related to the after-market.
The launch of the real-time after-market will end the existing after-hours single-price trading session, which had matched orders every 10 minutes from 4 p.m. to 6 p.m. Hours for after-hours block and basket trading will be extended to 8 p.m.
Eligible securities in the after-market will be stocks and depositary receipts listed on the KOSPI and Kosdaq. Exchange-traded funds and exchange-traded notes will be excluded in consideration of market volatility.
Orders will be restricted to limit orders, excluding market orders. Korea Exchange plans to apply the same price band as the regular session, allowing moves of up to 30% above or below the previous day's close, as well as volatility interruption mechanisms.
An after-market-only market-making program will be introduced for illiquid stocks. The settlement cycle will be T+2, the same as in the regular session.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul