Introduction of New Order Types and Amendments to Operating Rules Implementation Details
Development of a System to Support Integrated Market Operations and Monitoring,
View of the Seoul headquarters of the Korea Exchange in Yeouido, Seoul. ⓒKorea Exchange, ‘[Dailyan = Reporter Seo Jin-ju] As Nextrading (NXT), Korea’s first alternative trading system, launches and creates a multi-market for stock trading, the Korea Exchange (KRX) is taking all necessary precautions. The plan is to focus on preventing any gaps in stable market operation and investor protection following the introduction of the alternative trading system.’,
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, ‘According to the financial investment industry on the 3rd, Nextrading obtained formal approval for the alternative trading system on the 5th of last month and is set to officially launch on the 4th.’,
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, ‘Following the passage of capital market legislation to organize systems related to the alternative trading system in a plenary session of the National Assembly on February 27th, the foundation has been laid for the smooth launch and operation of the alternative trading system. However, the Korea Exchange is committed to ensuring the stable operation of a multi-market system in the future.’,
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, ‘To this end, the Korea Exchange has amended operating rules implementation details, and developed a system to support integrated market operations, clearing, and monitoring, conducting final tests by today.’,
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, ‘First, the operating rules implementation details are amended. New order types such as the “mid-price order” and “stop-limit order” are introduced. These new order types are established to increase tradability compared to other orders and can be utilized for loss limitation or split orders.’,
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, ‘The mid-price order is set at the mid-point between the highest purchase and sales bids. The stop-limit order executes a transaction at a pre-set price once the price reaches the pre-set level.’,
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Kim So-young, Vice Chairman of the Financial Services Commission, delivers a congratulatory speech at the ‘ATS Operational Plan Seminar’ held in conjunction with related institutions such as the Korea Financial Investment Association, Korea Exchange, and Nextrading on May 9th last year, in Yeouido, Seoul. ⓒFinancial Services Commission, ‘Matters for stable integrated market operations are also reflected. When designating items subject to market management, such as short-selling overheated items or short-term overheated items, the trading volume on Nextrading is included to determine the final designation.’,
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, ‘However, in the after-hours single price trading market, items competing for trading in the Nextrading market are excluded. This is to prevent market manipulation activities that exploit differences in trading methods between the two markets.’,
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, ‘Contractual agreements were made to exchange information essential for integrated market operations, clearing, market, and surveillance, including items for operation, and index composition items with Nextrading. Through this, they aim to respond promptly to unfair trade practices in the integrated market and systematically manage clearing and settlement risks by establishing mutual cooperation terms.’,
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, ‘Finally, the volumes traded on Nextrading are included in the final decision on market management items and delisting. Plans are being prepared to provide such information to Nextrading even in situations of trading suspension due to important disclosures.’,
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, ‘An exchange official stated, “We have been securing system stability and providing a smooth testing environment for Nextrading and securities companies,” emphasizing that “even after the introduction of the alternative trading system, we will focus on preventing any gaps in stable market operations and investor protection.”\n’]