Korea Exchange to Open After-Hours Stock Market Sept. 14, Extending Trading to 8 p.m.
Summary
- Korea Exchange said it will open an after-hours market on Sept. 14 that will operate from 4 p.m. to 8 p.m.
- Korea Exchange said the launch of the after-hours market will eliminate the existing off-hours single-price trading session that had matched orders every 10 minutes between 4 p.m. and 6 p.m.
- The exchange said it plans to apply to the after-hours market the same daily price limit (previous close ±30%) and volatility interruption (VI) rules used in the regular session.
Forecast Trend Report by Period
Stock trading in South Korea will be available until 8 p.m. starting in mid-September.
Korea Exchange said Sept. 9 that it will open an after-hours stock market 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 business rules for the KOSPI and KOSDAQ markets related to after-hours trading.
The new real-time after-hours session will replace the existing off-hours single-price trading session, in which orders were matched every 10 minutes from 4 p.m. to 6 p.m. Hours for off-hours block and basket trading will be extended to 8 p.m.
Eligible securities in the after-hours market will be stocks and depositary receipts listed on the KOSPI and KOSDAQ. Exchange-traded funds and exchange-traded notes will be excluded because of market volatility concerns.
Orders will be limited to limit orders, with market orders not allowed. Korea Exchange plans to apply the same daily price limit as the regular session, or plus or minus 30% from the previous day's close, along with volatility interruption mechanisms.
A market-making program for the after-hours session will be introduced for illiquid stocks. The settlement cycle will remain T+2, the same as for the regular session.
