A 5% plunge in KOSPI 200 futures prompted a five-minute trading halt on the Korea Exchange.
The Korea Exchange activated a sidecar mechanism after KOSPI 200 futures fell 5%, triggering a five-minute halt on program trading. The move aims to curb excessive volatility in the derivatives market.
Sidecars are rare and typically deployed during sharp market declines to stabilize trading. The last activation occurred during heightened geopolitical tensions in 2022. Futures contracts often serve as a leading indicator for cash market movements.
No immediate market reaction details were provided, but such halts usually precede broader equity declines or temporary rebounds.