South Korea launches "Sidecar Mechanism" temporarily halts KOSDAQ market algorithmic trading

PANews February 19th reported that the Korea Exchange has launched a “sidecar mechanism” and temporarily halted algorithmic trading on the KOSDAQ market. One of the triggers for this measure was a significant rise in KOSDAQ 150 futures, which surged by as much as 6%, leading to increased market volatility. According to regulations, algorithmic trading quotes will resume after a five-minute pause, aiming to stabilize market order and protect investors’ interests. The Korea Exchange stated that this brief suspension is to ensure market stability and transparency, and to prevent potential speculative behaviors. Investors should remain vigilant when trading, monitor market dynamics, and allocate assets reasonably to cope with rapid market changes.