NEXT, Korea’s first alternative trading system (ATS), is set to launch on March 4th, 2025. The market will operate for 12 hours daily, enabling stock trading during commuting hours. Additionally, the introduction of new pricing mechanisms will support diverse investment strategies.
Starting with 10 listed stocks, the number of tradable stocks is expected to increase to 800 within a month. Securities firms, which collectively held nearly 90% of the market share last year, will participate from day one.
According to the financial investment industry, Nextrade is an ATS established by financial investment associations and securities firms. ATS refers to securities trading platforms that facilitate trade execution outside traditional exchanges.
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Many developed markets, including the U.S., Europe, and Japan, have already integrated ATS to foster competition with conventional exchanges.
In the U.S., approximately 30 ATSs handle around 11% of total stock trading, while Japan’s three ATSs account for 12% of its market. Australia, with a single ATS, sees it capture 20% of trading activity.
However, critics argue that Korea’s stock market has been hindered by the Korea Exchange’s monopoly since 1956, limiting the availability of investor-centric services, slowing IT trading infrastructure advancements, and making it challenging to accommodate demand for new financial products.
But, according to Maeil Business Newspaper, the launch of Nextrade is expected to benefit investors by introducing competition, allowing them to choose between two exchanges for stock trading. One of the most significant advantages is the extended trading hours.
With Nextrade, the domestic stock market’s trading hours will increase from the current 6 hours and 30 minutes (9 a.m. to 3:30 p.m.) to 12 hours (8 a.m. to 8 p.m.).
Additionally, Nextrade will introduce a pre-market session from 8 a.m. to 8:50 a.m. and an aftermarket session from 3:30 p.m. to 8 p.m., providing investors with more opportunities to trade.
