Orders related to program trading are disclosed to all investors who participate in the market in order to prevent unfair trades and protect investors.
Main Contents
Separate display of program price
The numbers of orders and executed orders for program trading by each issue are published in real time through information terminals.
Prior notice of program
  • If a securities firm submits orders of program trading (including the corrected orders) from 10 minutes before the market closing on the final trading day of KOSDAQ 150 index futures, the related facts must be reported to KRX by 15 minutes before the market closing and the orders for program trading must be submitted in the same order details as the report.
  • KRX discloses the above fact through information terminals in real time so the closing index value can be set fairly.
Ex-post notice of program trading on the final trading day of futures
  • If a certain level of disparity occurs between buy and sell orders of program trading which is previously reported, additional program trading orders can be submitted to the side of which total buy or sell order amount is lower and this fact must be reported later on (within 1 hour after the market closing).
    • Standard of disparity ratio of order amount: Between the total amount of buy orders and the total amount of sell orders of the program trading, which are previously reported, the ratio obtained by dividing the amount produced by subtracting the small amount from the large amount by the small amount shall exceed 75%.
    • Standard of disparity of order amount: The difference between the sums of sell orders and buy orders of program trading, which are previously reported, shall exceed KRW 5 billion
  • The prices of program trading orders which are subjected to afterward reports are limited in order to prevent the change in price direction.
    • In case of placing sell orders of program trading, price must be same or higher than the previous price
    • In case of placing buy orders of program trading, price must be same or lower than the previous price
Reporting obligation for program trading status and index arbitrage trading balance status of securities companies
Securities companies must report index arbitrage trading balance to KRX, which is published in the market.