Seoul, Feb 5 (IANS) South Korea’s financial regulator said on Wednesday that an alternative trading system will set sail in March for greater efficiency and convenience in the trading of securities, heralding an overhaul in the country’s stock market.
Currently, the Korea Exchange (KRX), launched in 1956, is the country’s only national operator of the stock market.
The Financial Services Commission (FSC) said the country’s secondary stock trading platform, dubbed Nextrade (NXT), will run for 12 hours from 8:00 a.m. to 8:00 p.m., longer than the trading hours from 9:00 a.m. to 3:30 p.m. on the main bourse operated by the KRX, reports Yonhap news agency.
The NXT will also offer lower fees compared with the main bourse, and introduce different stock bid and ask prices.
Short-selling will be allowed, but banned during pre-market and after-market trading hours, according to the FSC.
The KRX’s daily stock price limits and market stabilization measures, such as a circuit breaker, will be also introduced on the NXT.
A total of 32 brokerage houses will join the NXT, and some 800 companies will be listed on the secondary stock exchange.
Meanwhile, South Korean stocks finished over 1 per cent higher on Wednesday, tracking overnight gains on Wall Street. The Korean won was trading sharply higher against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 27.58 points, or 1.11 per cent, to close at 2,509.27.
Trade volume was high at 429 million shares worth 9.7 trillion won ($6.71 billion), with winners outpacing losers 589 to 300.
Institutions and foreign investors combined bought a net 99 billion won worth of local shares, while retail investors sold a net 197 billion won.
Overnight, Wall Street stocks were buoyed by eased concerns over trade following U.S. President Donald Trump’s decision to pause the imposition of tariffs on Canada and Mexico for a month.
The S&P 500 finished up 0.72 per cent, and the Dow Jones Industrial Average climbed 0.30 per cent. The Nasdaq composite added 1.35 per cent.
–IANS
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