- Definition
- It is a system to provide a cooling-off period through a trading halt so market participants have time to evaluate the market situation when a certain level of price disparity occurs between preferred stocks, new stocks and securities investment companies which have comparable prices and the prices of their comparable issues.
- Time period for trading halt
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- If the base prices of preferred stocks, new stocks and securities investment companies are 200% or higher than the each price in comparison (base price of common stocks for preferred stocks, base price of common stocks for new stocks and their net asset values for securities investment companies) and preferred stocks, new stocks and securities investment companies are already designated or about to be designated the next day as price-surged stocks, 3 days of trading halt
- If the base prices of preferred stocks, new stocks and securities investment companies are 200% or higher than the each price in comparison from the 3 trading days after the trading halt is lifted and if stock price increases 20% or more for the last 3 trading days, 3 days of trading halt
- If the above situation repeats after the trading resumes, the same standard for trading halt is applied. Securities companies have a report obligation for program trading status and index arbitrage trading balance status to KRX.
- Exception for time period for trading halt
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- For a stock split, reverse stock split, spin-off and, merger after spin-off of listed corporations, and merger between listed corporations, between 4 to 2 days before the deadline for submission of stock certificate of listed corporations
- In case of ex-dividends or ex-rights, between 4 to 2 days before the base date