The introduction of the pre-market trading system has been postponed until the end of next year, and the planned after-market trading for exchange-traded funds (ETFs) next month is now in jeopardy. This has disrupted the Korea Exchange's ambitious plans to extend trading hours.
On August 10, the Korea Exchange convened asset management firms to gauge their interest in participating in after-market ETF trading. Reports indicate that all firms expressed their intention to abstain from participation.
Concerns over market volatility, particularly regarding single-stock leveraged ETFs, have led to suggestions that after-market ETF trading may be premature. Additionally, the Korea Exchange's decision not to provide real-time estimated net asset values (iNAV) for ETFs traded in the after-market has added to the apprehension.
As competitor NextTrade seeks to expand its ETF offerings within the year, the Korea Exchange risks missing out on opportunities for after-hours trading of ETF products.
Earlier this year, the Korea Exchange had planned to implement a 12-hour trading system starting June 29, with pre-market trading from 7 to 8 a.m. and after-market trading from 4 to 8 p.m. However, due to opposition from labor unions in the securities industry and concerns from the sector, the launch was postponed to September 14 in March. In June, the timeline for the pre-market launch was further delayed to the end of next year, putting the goal of establishing a 24-hour trading system by the end of 2027 in jeopardy.
* This article has been translated by AI.
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