The alternative trading venue said orders priced more than 10% away from the prior close or reference price will move into a two-minute call auction after distorted SK Hynix premarket prints.
Nextrade, or NXT, plans to introduce a static Volatility Interruption (price curb that pauses trading) on Sept. 14 after abnormal SK Hynix premarket trades revived concerns over opening-price distortions and spilled into crypto derivatives. The issue resurfaced on Aug. 6, when 11 shares of SK Hynix traded at 1.168 million won immediately after NXT's 8 a.m. to 8:50 a.m. premarket session opened, 29.97% below the previous close of 1.668 million won. A VI was triggered at once, sending the stock into a two-minute call auction, and the loss later narrowed to about 3% to 4%. The episode highlighted how NXT's premarket structure, which uses continuous matching instead of the regular session's opening call auction, can let small-lot trades distort prices. A similar move on July 28, when one share changed hands at the daily lower limit of 1.272 million won, had limited impact in the cash market but fed into the reference price for an SK Hynix perpetual futures product (crypto derivatives without expiry), causing about 83 billion won in forced liquidations (automatic closure of leveraged positions). Under the new rule, orders more than 10% away from the previous day's close or the reference price will shift into a two-minute call auction and be matched at an equilibrium price.