Korea Exchange launches after-market trading to extend hours

The Korea Exchange (KRX) is launching a new after-market trading session starting on the 14th, extending trading hours from 4:00 PM to 8:00 PM. This move aims to increase liquidity and provide more options for investors, particularly to compete with overseas markets and alternative trading systems (ATS) like Nextrade.

Unlike the limited selection offered by Nextrade, the KRX after-market will allow trading for 2,459 stocks across the KOSPI and KOSDAQ markets. The new system will utilize continuous execution trading rather than the previous 10-minute interval single-price method. However, certain products such as Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs) are excluded from this session to prevent excessive market volatility.

Short selling will also be permitted during these after-market hours, subject to the same uptick rules applied during regular sessions. This expansion is part of a long-term strategy by the KRX and financial authorities to eventually move toward a 24-hour trading system, a goal supported by recent collaborations with the New York Stock Exchange (NYSE) to share expertise in extended trading hours and settlement cycles.