Nextrade adds static volatility interruptions to premarket trading from September 14

  • Nextrade will add static volatility interruptions and revise premarket execution procedures.
  • A July 28 SK Hynix trade contributed to about 80 billion won in crypto-derivatives liquidations.
  • September 14 marks the start of two-minute auctions after static or dynamic VI triggers.

Nextrade (NXT) will introduce a static volatility interruption (VI), a safeguard against sharp price moves, and require two-minute single-price auctions after either static or dynamic VI events from September 14. The operator said on the 31st that it will revise its business regulations. Static VI will activate when prices move 10% or more from the price set in the previous single-price auction or from the reference price. If the first premarket price moves at least 10% from the previous session’s close, orders will also be collected for two minutes before being matched at one price. Dynamic VI, which currently halts trading for two minutes before continuous trading resumes, will follow the same auction process after the pause. The changes follow incidents in which small SK Hynix orders set unusually low premarket prices, including an August 6 trade of 11 shares at 1.168 million won, 29.98% below the prior close. A July 28 trade of one share at 1.272 million won, the daily floor, was reflected in the underlying price for crypto derivatives and contributed to liquidations of long positions worth about 80 billion won ($58 million). Nextrade also plans to set the first premarket price through a single-price auction.

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