KOSPI Volatility Triggers Sidecar Mechanism, Pausing Algorithmic Trading for 5 Minutes
2026-07-20 10:27

Woofun AI reports that the Korea Exchange (KRX) engaged the Sidecar mechanism on July 20th in response to KOSPI index volatility. This action suspended algorithmic trading for approximately five minutes. The Sidecar protocol functions as a speed bump during market turbulence, restricting only programmatic activity while allowing manual trading to proceed. This differs from the Circuit Breaker, which halts all market operations under extreme conditions to prevent panic-driven escalation.

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