NextTrade, Circuit Breaker Malfunction in Large-Scale and Basket Trading
The alternative trading system (ATS) NextTrade has experienced delays in the opening of large-volume and basket trading due to a circuit breaker malfunction.
According to the financial investment industry on the 7th, NextTrade originally planned to open the regular market, closing price trading market, and large-volume and basket trading market simultaneously from its launch day on the 4th, but the operation of the large-volume and basket trading market has been postponed until now.
On the 4th, the alternative trading system (ATS) 'NextTrade (NXT)' opening ceremony was held at the Financial Investment Center Building in Yeouido, Seoul. Kim Hak-su, CEO of NextTrade, who attended the event, is delivering a welcome speech. 2025.03.04 Photo by Yoon Dong-joo
View original imageThis is understood to be because a malfunction was identified during a stock price drop simulation conducted a few days before the opening, where NextTrade's large-volume trades were executed as usual despite the Korea Exchange's circuit breaker being triggered.
A circuit breaker is a system that temporarily halts stock trading when stock prices fluctuate sharply. In Korea, a Level 1 circuit breaker is triggered if the spot market fluctuates by 8% compared to the previous day and sustains this for one minute.
If the KOSPI or KOSDAQ index falls by a certain percentage and the exchange triggers a circuit breaker, NextTrade must suspend trading of the affected market's securities among the trading execution target stocks according to its operating regulations.
When the Korea Exchange triggers a circuit breaker, trading in the affected market is suspended for 20 minutes, after which orders are accepted for 10 minutes and trading resumes with single-price trading (call auction). Considering the order acceptance time, NextTrade resumes trading 30 minutes after the suspension.
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A NextTrade official explained, "A deficiency was found in the large-volume and basket trading market system, causing the delay in opening that market, and it is scheduled to open after system maintenance."
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