- Trading Mechanism
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The KONEX market operates basically in the same way as the KOSPI market and the KOSDAQ market for the convenience of investors and stable operation of the trading schemes. As such, major trading arrangements including trading hours, market holidays, trading halts, trading methods, restrictions on short-selling, clearing and settlement, and good faith deposit are the same as the KOSDAQ market. The trade execution method also adopts the single price call auction and continuous trading at multiple prices like the KOSPI market.
However, considering the unique characteristics of the KONEX market as a market for professional investors - limited liquidity and the various types of listings such as listing via public offering, private placement, or listing without a public offering, the trading system of the KONEX market was designed to reflect such features. (e.g. Only in KONEX market, it is allowed to execute a block trade even if the concerned issue was not traded during the regular session of the day(previous day in case of the pre-hours session)). The one-sided auction and mandatory liquidity provider system are some of them. In addition, as a market geared for long-term ‘buy and hold’ investment on growth prospects of start-ups, with a limited number of listed companies, the KONEX market has simple trading scheme.