Volatility controls spike in first day of after-hours trading on Korea Exchange

Seoul, September 15 (Yonhap) -- On the inaugural day of after-hours trading at the Korea Exchange (KRX), volatility surged and price control measures were triggered at an elevated rate, according to the exchange operator. The KRX initiated after-hours trading from 4 p.m. to 8 p.m. on Monday in an effort to bolster global competitiveness and broaden trading options for investors.

In total, 72.24 million shares valued at 1.8 trillion won (US$1.3 billion) changed hands during the four-hour session, a stark contrast to the 905 million shares worth 25.8 trillion won that were exchanged during Monday's regular trading session.

During the after-hours trading, so-called volatility interruption mechanisms were triggered 1,637 times, a substantial increase from the 400 occurrences during the regular trading session. Analysts have linked the heightened volatility to insufficient liquidity, as retail investors were granted the ability to buy or sell a wide array of stocks in real time.

Most stocks comprising the Korea Composite Stock Price Index and the KOSDAQ markets are open for trading during the after-hours session. However, investors are prohibited from trading exchange-traded funds and exchange-traded notes during the four-hour period, due to concerns about market volatility, as stated by the KRX.