NewsHK
South Korean equity markets triggered an automatic circuit after KOSPI 200 futures climbed 5%, prompting the Korea Exchange to activate a sidecar on the KOSPI index.
The mechanism suspended program trading for five minutes, a safeguard designed to prevent a sharp futures move from running into the cash market faster than participants can respond.
The sidecar mechanism A sidecar is distinct from a full circuit breaker.
Where a circuit breaker halts all trading, a sidecar targets only program orders: the automated, basket-driven flows that execute across multiple securities simultaneously.
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