KOSPI on a Roller Coaster Ride... ‘Buy-Side Sidecar’ Triggered Just a Day After Plunge

[Financial News] The Korea Composite Stock Price Index (KOSPI) surged in a single day, triggering a buy-side sidecar that temporarily suspends the effectiveness of program-trading buy orders.
The Korea Exchange (KRX) announced that it activated a buy-side sidecar on the KOSPI market at 9:26 a.m. on the 3rd.
The measure was taken after KOSPI 200 Index futures rose more than 5% and stayed at that level for one minute. At the moment the buy-side sidecar was triggered, the KOSPI 200 Index futures were up 36.55 points (5.05%) from the previous session, at 759.15.
A sidecar is a mechanism that halts the effectiveness of program-trading orders for five minutes when the KOSPI 200 Index futures price rises or falls by 5% or more and maintains that move for one minute.
This is the first time in about 10 months that a buy-side sidecar has been triggered on the KOSPI, since April 10, 2025.
It also comes just one day after a sell-side sidecar was activated. The previous day, the KOSPI plunged on news that Kevin Warsh, known for his hawkish stance favoring monetary tightening, had been nominated as the next chair of the Federal Reserve System (the Fed).
However, investor sentiment rebounded within a day as U.S. stock markets closed sharply higher. Overnight, the Dow Jones Industrial Average (DJIA) gained 515.19 points, or 1.05%, to finish at 49,407.66. The S&P 500 Index rose 0.54%, and the NASDAQ Composite Index ended up 0.56%.
Meanwhile, the KOSPI opened at 5,114.81, up 165.14 points (3.34%) from the previous session. The KOSDAQ Index started at 1,135.94, an increase of 37.58 points (3.42%).

jisseo@fnnews.com Reporter Seo Min-ji Reporter