Alternative trading system (ATS) Nextrade will reduce the number of stocks available for trading by 50 following a surge in trading volume driven by the domestic stock market rally. The move is aimed at complying with the "15% rule."
Nextrade announced on the 9th that it will adjust the number of tradable stocks from 700 to 650, effective from the 12th of this month through the end of June. The exclusions comprise 15 KOSPI stocks and 35 KOSDAQ stocks.
The KOSPI stocks being removed include HD Hyundai Energy Solutions, HJ Heavy Industries, LG Display, Daeduck Electronics, Daedong, Daewoo Engineering & Construction, Taihan Cable & Solution, Ecopro Materials, Woojin, Jeju Bank, Pan Ocean, Hannong Chemicals, Hanon Systems, Korea Electric Power Industrial Development, and Hanwha Life Insurance.
The KOSDAQ stocks include Wonik Holdings, HPSP, KH Vatec, LS Materials, Yujin Robot, Zeus, Jeju Semiconductor, NHN KCP, Ananti, and Hyundai Bio.
Nextrade plans to select new trading stocks for the third quarter around the end of June. The company stated, "We will closely monitor daily trading volume ratios to comply with trading limits under the Capital Markets Act and strive to maintain the list of tradable stocks as stable as possible to minimize inconvenience for investors."
Under the current enforcement decree of the Capital Markets Act, an alternative trading system's average daily trading volume over the most recent six months cannot exceed 15% of the Korea Exchange (KRX) volume.