NextTrade Launch Imminent... Receives Preliminary Approval for Alternative Exchange

NextTrade is expected to launch soon after receiving preliminary approval for an Alternative Trading System (ATS).

The Financial Services Commission held its 14th regular meeting on the 19th and granted preliminary approval for NextTrade's ATS investment brokerage business.

The Korea Financial Investment Association has been promoting the establishment of ATS for several years, starting with laying the groundwork for ATS introduction under the Capital Markets Act in August 2013.

The Financial Services Commission explained, "Financial authorities are promoting the introduction of ATS to establish a competitive system among exchanges and enhance innovation in the capital market," adding, "This is the first preliminary approval granted for an alternative trading system since the system was introduced in 2013."

As a result of the preliminary approval review for NextTrade, it met all the licensing requirements under the Capital Markets Act, and the external evaluation committee also assessed it as suitable to operate an alternative trading system.

Considering the time required to build a stable IT system, NextTrade can apply for the full license within 18 months from the date of preliminary approval.

This content was produced with the assistance of AI translation services.