KRX Triggers KOSPI Index Circuit Breaker, Halting Program Trading for 5 Minutes

BlockBeats News, July 29th: The Korea Exchange triggered the KOSPI Index Circuit Breaker, pausing programmatic trading for 5 minutes.

The Circuit Breaker mechanism is mainly used to address sharp fluctuations in a short period of time, only restricting programmatic trading while allowing manual trading to continue normally. Unlike the Circuit Breaker mechanism, the Circuit Breaker mechanism does not halt trading in the entire market; it is more seen as a "speed bump" during market turbulence.

In contrast, the Circuit Breaker mechanism is usually used in extreme market conditions. Once triggered, it halts trading across the entire market to prevent panic-induced further escalation of volatility.