Starting September 14, the Korea Exchange will exclude exchange-traded funds (ETFs) and exchange-traded notes (ETNs) from its new aftermarket operations.
According to the securities industry and Yonhap News Agency, the Korea Exchange recently announced this policy as part of a revision to its operational rules for the KOSPI and KOSDAQ markets.
As a result, ETFs and ETNs will not be tradable in the aftermarket, which will operate from 4 p.m. to 8 p.m. This addition means that the existing exclusion list, which already includes stocks that did not trade during the regular market hours, investment warning stocks, risky stocks, stocks with abnormal price surges, managed stocks, and stocks with low liquidity, will now also encompass ETFs and ETNs.
Initially, the exchange planned to allow trading of index products like ETFs in the aftermarket. However, this decision was reversed following concerns that single-stock leveraged and inverse ETFs based on Samsung Electronics and SK Hynix had increased market volatility during recent adjustments in the global semiconductor sector.
Nonetheless, trading of ETFs and ETNs will still be possible through after-hours block trading. The minimum trading requirement will be lowered from 500 shares to just one share to accommodate post-market trading needs. The aftermarket will permit only limited types of orders and will implement safety measures such as self-trade prevention (SMP) and automatic cancellation upon disconnection (COD).
* This article has been translated by AI.
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