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Alternative trading platform “NextTrade (NXT).” (Photo: Yonhap News) |
[Alpha Biz= Paul Lee] On the first day of the Korea Exchange’s (KRX) stock trading fee reduction on the 15th, trading value on the alternative trading system (ATS) NextTrade (NXT) fell by 37%.
According to NextTrade, pre-market trading (8:00–8:50 a.m.) and main-market trading (9:00 a.m.–3:20 p.m.) recorded volumes of 43,140,696 shares and 76,291,752 shares, respectively. Compared with the average daily volume from December 1–14, pre-market volume rose 38.2%, while main-market volume declined 10.6%.
Trading value showed a mixed pattern. Pre-market trading value reached KRW 1.7507 trillion, up 17.0% from the December 1–14 average of KRW 1.4968 trillion. In contrast, main-market trading value fell to KRW 3.4151 trillion, down 37% from the average of KRW 5.4251 trillion.
Market participants attributed the drop to KRX’s temporary reduction in trading fees. The exchange converted its flat fee rate of 0.0023% to a tiered structure starting the 15th, reducing fees by 20–40% until February 13 next year.
Under the Smart Order Routing (SOR) system, if investors do not designate a trading venue, orders are automatically allocated based on fees and execution probability. With the reduced fee gap, some orders that would have gone to NextTrade likely shifted to KRX.
The temporary fee reduction will be in effect for two months.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
