by Lim Chunhan
Published 11 Dec.2020 17:51(KST)
[Asia Economy Reporter Lim Chunhan] The Korea Exchange announced on the 11th that it has preliminarily selected low-liquidity stocks to which the single-price trading method will be applied throughout next year.
This is to facilitate smooth price discovery for stocks with low trading frequency. The liquidity level of listed stocks is evaluated over one year, and stocks with a transaction duration (the average time interval between each trade execution) exceeding 10 minutes are classified as low-liquidity stocks, to which the single-price trading method will be applied.
In the KOSPI market, 25 stocks including Yuhan Yanghangwoo, Doosan2wooB, Buguk Securitieswoo, and Wonlim have been preliminarily selected as targets for single-price trading. In the KOSDAQ market, two stocks, Moatec and Lutronik3wooC, have been selected. Additionally, 11 stocks such as Heungkuk Fire & Marine Insurance2wooB, Ewha Industry, and BYCwoo were also classified as low-liquidity stocks but were excluded from the single-price trading targets as liquidity providers (LPs) were designated for them.
The Exchange plans to finalize the single-price trading targets by the end of this month after re-evaluating the designation of LPs and liquidity levels. The finally selected stocks will be traded using the single-price trading method with 30-minute intervals from January 4 to December 30 next year. Thereafter, the application of the single-price trading method will be decided based on monthly evaluations.
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