A program sell-order sidecar — a temporary suspension of program selling — was triggered Wednesday as the Kospi plunged, just one day after a buy-side sidecar had been activated.
According to Korea Exchange, the sidecar halted program sell orders for five minutes starting at 1:16:25 p.m. Wednesday, triggered by a sharp move in the KOSPI 200 futures index.
At the time of activation, the KOSPI 200 futures index stood at 1,223.15, down 64.65 points, or 5.02 percent, from the previous session's closing price.
The Kospi sidecar is triggered when the KOSPI 200 futures price falls 5 percent or more from its reference price and holds that level for at least one minute, suspending program sell orders for five minutes.
So far this year, both sell-side and buy-side sidecars have each been triggered 12 times on the Kospi, bringing the total to 24 activations.
moon@heraldcorp.com
