NextTrade to Cut Number of Tradable Stocks to 650 as Market Rally Boosts Volumes

As trading volumes surge amid a strong domestic stock market, alternative trading system NextTrade is moving to reduce the number of stocks available for trading.
NextTrade announced on the 9th that, starting on the 12th, it will cut the number of eligible stocks from 700 to 650. A total of 50 stocks will be removed from its trading list, including 15 from the Korea Composite Stock Price Index (KOSPI) and 35 from KOSDAQ.
NextTrade explained that the move is "part of our own efforts to consistently comply with trading limits since February."
Initially, NextTrade had selected 700 stocks as eligible for trading in the first quarter, including 375 KOSPI stocks and 325 KOSDAQ stocks.
However, as trading activity jumped sharply on the back of the market rally, the company is seen as cutting the number of stocks in order to comply with the so-called "15% rule." Under the current Enforcement Decree of the Financial Investment Services and Capital Markets Act, the average daily trading volume of an alternative trading system over the past six months cannot exceed 15% of the trading volume on the Korea Exchange (KRX).
The measure will remain in place until the end of June. NextTrade plans to keep the list at 650 stocks through the second quarter, then select a new set of eligible stocks for the third quarter at the end of June.
A NextTrade official stated, "We will closely monitor our daily share of trading volume to ensure we comply with the trading limits under the Financial Investment Services and Capital Markets Act," adding, "We will strive to keep the list of tradable stocks as stable as possible to minimize inconvenience for investors."

jisseo@fnnews.com Seo Min-ji Reporter