Seoul: South Korea's financial regulator announced that a new alternative trading system, Nextrade (NXT), will be launched in March to enhance efficiency and convenience in the trading of securities, marking a significant change in the country's stock market landscape.
According to Yonhap News Agency, the Korea Exchange (KRX) has been the sole national operator of the stock market since its inception in 1956. The Financial Services Commission (FSC) revealed that the NXT will operate for 12 hours daily, from 8:00 a.m. to 8:00 p.m., surpassing the 9:00 a.m. to 3:30 p.m. trading hours of the KRX.
The NXT will offer lower fees and different stock bid and ask prices compared to the main bourse. While short-selling will be permitted, it will be restricted during pre-market and after-market trading hours.
The FSC also noted that the daily stock price limits and market stabilization measures, including a circuit breaker, currently in place on the KRX will be implemented on the NXT.
A total of 32 brokerage houses are set to join the NXT, with approximately 800 companies expected to be listed on the secondary stock exchange.