Market NewsKRX Activates Sell-Side Circuit Breaker on KOSDAQ for First Time in 15 Months Amid Market Plunge

On November 5, a sell-side sidecar was triggered on the KOSDAQ market, for the first time in about 15 months, as the index tumbled sharply amid a broad market sell-off.

According to the Korea Exchange (KRX), the circuit breaker was activated at 10:26:28 a.m., temporarily halting program sell orders for five minutes due to significant volatility in both the KOSDAQ 150 futures and the underlying cash index.

At the time of activation, the KOSDAQ 150 futures were down 101.40 points (6.23%) from the previous close, at 1,523.90.

A sidecar is a mechanism designed to stabilize markets by suspending program trading when excessive fluctuations occur in the futures market that could spill over into the cash market.