The Korea Exchange has decided to postpone the introduction of pre-market trading until the end of 2027 as part of its plan to extend trading hours. However, the after-market will proceed as scheduled, launching in September.
On June 19, the exchange held a meeting with executives from major securities firms to discuss adjustments to the trading hour extension schedule, leading to this decision.
The exchange has been working to expand trading hours to enhance its competitiveness against major overseas exchanges like the New York Stock Exchange and Nasdaq, aiming to improve the global competitiveness of the domestic capital market. The long-term goal is to establish a 24-hour trading system, with the pre-market and after-market serving as intermediate steps.
Initially, the exchange planned to operate both the pre-market and after-market starting June 29. However, the need for additional time for system development and testing prompted a delay to September 14.
In April, the exchange began operating a simulated market to support testing ahead of the pre- and after-market launch. During this process, concerns were raised about the IT development and staffing burdens on securities firms, leading to further adjustments.
The pre-market, scheduled from 7:00 to 7:50 a.m., overlaps with the opening of the alternative trading platform NextTrade (NXT) at 8:00 a.m., creating significant pressure on the industry. This is due to the need to process unfilled orders and balances quickly, as NXT's pre-market opens just 10 minutes after the Korea Exchange's pre-market closes.
As a result, the pre-market is now set to be introduced at the end of 2027. The exchange plans to launch this service in conjunction with the development of a unified system called 'Single Board,' which will facilitate the transfer of unfilled orders between the pre-market, regular market, and after-market.
Conversely, the after-market is on track to launch on September 14, with the final date to be confirmed following discussions with securities firms. The exchange noted that there are no significant issues preventing the after-market from proceeding as originally scheduled.
Additionally, the exchange plans to shorten the settlement cycle alongside the extension of trading hours. The U.S. and Canada will reduce their settlement cycle from two business days (T+2) to one business day (T+1) in May 2024, while the UK and Europe are set to implement a similar reduction starting in October 2027.
A representative from the exchange stated, "We plan to proceed with the expansion of trading hours and the shortening of the settlement cycle without any setbacks to enhance the global competitiveness of our market infrastructure."
* This article has been translated by AI.
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