Securities industry workers angered by extended stock trading hours: "We oppose this unilateral push"

According to The Financial News, the Korea Exchange (KRX) is facing mounting backlash from the securities industry over its plan to extend trading hours. Critics argue that KRX is unilaterally pushing to lengthen trading hours to recoup profitability, without taking into account member firms’ staffing structures and systems.
At a press conference held at 11 a.m. on the 22nd in front of KRX in Yeongdeungpo District, Seoul, the Securities Sector Headquarters of the National Office and Financial Services Workers’ Union stated, "The Korea Exchange must not hold securities workers and financial investors hostage with a hastily drawn-up trading-hours extension plan designed to keep Nextrade (NXT) in check."
Recently, KRX outlined its trading-hours extension plan in the Financial Services Commission (FSC)’s New Year policy briefing. Starting in June, it aims to introduce a pre-market session from 7 a.m. to 8 a.m. and an after-hours trading session from 4 p.m. to 8 p.m., and it is targeting as early as December next year to establish a 24-hour trading system.
The National Office and Financial Services Workers' Union criticizes the extension of trading hours, arguing that it is being pursued not to enhance investor convenience but to defend KRX’s market share in competition with the alternative trading system NXT.
The union said, "We recognize that the stated justifications of aligning with global standards and improving investor convenience for the trading-hours extension plan are nothing more than a façade." It added, "Everyone knows that, behind this, the real aim is to defend KRX’s market share and offset the deterioration in its profitability caused by the launch of NXT last year."
The National Office and Financial Services Workers' Union also argues that the unilateral way KRX is pushing the plan is a serious problem. Lee Chang-uk, head of the Securities Sector Headquarters of the National Office and Financial Services Workers’ Union, said, "The FSC had urged KRX to work toward building a stable financial system through extensive discussions and planning with securities workers, rather than pushing ahead on its own." He continued, "KRX now claims that extending trading hours in the name of convenience will please investors, but critics point out that investors will be forced to stay alert for much longer, and that, as quotes are dispersed within a fixed pool of liquidity, new problems will arise for investment."
There is also criticism that the plan is being rushed through without any reinforcement of human or physical resources at securities firms. Beyond sales staff who handle online customers, core head-office staff such as IT workers who come in at dawn to keep systems running stably, and those in charge of settlement, treasury, and risk management for client funds, are effectively being placed in an environment where they will be compelled to start work earlier as trading hours are extended.
A vice head of the KB Securities Branch of the Labor Union pointed out, "With the extension of trading hours, member securities firms like KB Securities need additional human and physical resources, but this year’s budgets show that no preparations have been made at all." The vice head added, "Changes to working hours amount to changes in working conditions, so they require agreement with the union, and the FSC and the Ministry of Employment and Labor (MOEL) must also be involved in the discussions."

koreanbae@fnnews.com Bae Han-geul Reporter