South Korea's Nextrade platform announced that it will introduce a static circuit breaker mechanism starting September 14 to address abnormal pre-market volatility in stocks such as SK Hynix.
This measure aims to address the issue of stocks like SK Hynix experiencing significant price deviations due to low liquidity and small trading volumes during pre-market hours. Previously, SK Hynix had momentarily hit its 30% downside limit in Nextrade pre-market trading due to a very small number of shares being traded. A similar incident on the 28th of last month led to the forced liquidation of approximately 83 billion Korean Won (about 60 million US dollars) in perpetual contracts in the overseas cryptocurrency derivatives market. The new static circuit breaker mechanism stipulates that if the declared price deviates by 10% or more from the previous day's closing price or reference price, the system will pause immediate matching and switch to a two-minute call auction to discover a reasonable price.
Source:华尔街见闻 · Source Link
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