Korea Exchange to Open After-Hours Market on the 14th, Allowing Stock Trading Until 8 p.m.

[Financial News] Korea Exchange (KRX) will launch an after-hours market on the 14th, allowing real-time stock trading until 8 p.m. after the regular session ends. The existing after-hours single-price auction market, which operated until 6 p.m., will be abolished.
KRX said on the 9th that it had revised the operating rules for the securities and KOSDAQ markets and would begin operating the after-hours market on the 14th. The move is intended to respond to efforts by major U.S. exchanges to extend trading hours and expand domestic investors’ trading opportunities.
The after-hours market will operate for four hours, from 4 p.m. to 8 p.m. Previously, after-hours trading took place from 4 p.m. to 6 p.m. through single-price auctions at 10-minute intervals. Going forward, it will shift to continuous trading, in which transactions are executed in real time when buy and sell orders match, as in the regular session. Accordingly, the existing after-hours single-price auction market will be abolished.
Eligible securities will include stocks and depositary receipts (DRs) listed on the KOSPI and KOSDAQ markets, excluding certain issues requiring market management. Exchange-traded funds (ETFs) and exchange-traded notes (ETNs) will be excluded because of industry concerns that they could increase market volatility. After assessing market stability and liquidity, KRX plans to consider whether to allow trading in ETFs and ETNs.
Only limit orders, best-limit orders, and marketable limit orders will be permitted in the after-hours market. Market orders and conditional limit orders, whose prices are linked to other conditions, will be restricted to protect investors. The price limit will be ±30% from the previous day’s closing price, the same as in the regular session. Volatility interruptions (VIs) and short-selling regulations designed to prevent sharp price fluctuations will also apply in the same manner as during the regular session.
NextTrade (NXT) will operate its own after-hours market during the same period. If an investor does not designate a specific market, the securities firm will submit the order to the market most favorable to the investor, taking into account factors such as the likelihood of execution and price in accordance with best-execution standards.
KRX had initially planned to open its pre-market and after-hours markets simultaneously at the end of June, but adjusted the schedule to launch the after-hours market first after reflecting industry feedback. It also operated a simulated market under conditions identical to those of the actual market for 23 weeks, from April 6 through the 10th of this month, to check system stability.
A KRX official said, "The launch of the after-hours market is expected to improve investment convenience and market competitiveness by allowing investors to reflect information arising after the regular session ends in stock prices more quickly." The official added, "We plan to continue monitoring trends in extended trading hours at global exchanges and consider extending trading hours in stages."
  
[email protected] Bae Hangeul Reporter