Korea Exchange in Talks with Securities Firms Over Pre-Market Trading Session

The Korea Exchange (KRX) is reconsidering the introduction of a 'pre-market' trading session for the stock market in conjunction with securities firms. The pre-market is a system allowing trading from 7:00 AM to 7:50 AM, before regular trading hours. Securities firms have previously expressed concerns regarding the burden of developing IT systems and stability issues.

Consequently, the KRX had postponed the planned introduction of the pre-market and after-market trading sessions, originally slated for the end of June, to September 14. Through the upcoming meeting, the KRX intends to finalize discussions on whether and when to implement these sessions.

A key issue to be addressed at the meeting is the technical and system-related burden arising from the overlap between the pre-market hours and NEXTRADE, an alternative trading system (ATS) set to operate from 8:00 AM. It has been pointed out that the brief window between the end of the KRX pre-market and the opening of the NEXTRADE pre-market presents a challenge in processing unmatched orders and remaining positions.

The securities industry is leaning towards a plan to prioritize the introduction of the after-market session, which involves a relatively lower burden for IT development. A KRX official indicated that the direction would be clarified after the meeting concludes.