Sidecar trading halt triggered on Kospi 200 Futures after 5% fall

Finance

Sidecar trading halt triggered on Kospi 200 Futures after 5% fall

Published: 05 Aug. 2024, 12:03

신하늬
shin.hanee@joongang.co.kr

A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on Monday. [NEWS1]

A sidecar trading curb has been activated on the Kospi 200 Futures index as Korean stocks took a steep plunge amid growing U.S. recession fears.

The sidecar trading halt took effect at 11 a.m. for five minutes, as the Kospi 200 Futures slid 5.08 percent, or 18.65 points, from the previous trading day to 348.05 points.

A sidecar suspends futures trading for five minutes to prevent panic. It is triggered when Kospi 200 futures rise or fall more than 5 percent and maintain that gain or loss for at least one minute.

This is the first time since March 2020 that a sidecar has been activated.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]