South Korean brokerages are set to resume extended-hours trading of U.S. stocks later this year, ending a yearlong suspension triggered by a market disruption last summer. The service could restart as early as November, according to industry officials.
Overnight trading was suspended in August 2024 after Blue Ocean Technologies, a U.S.-based alternative trading system (ATS) that handled such orders, abruptly canceled transactions during a sharp global market downturn. The move nullified about 630 billion won ($460 million) worth of trades from roughly 90,000 Korean retail accounts.
The Financial Supervisory Service (FSS) recently concluded that local brokers could not be held legally liable for the incident, clearing a key obstacle for resumption.
Brokerages are now working to bolster safeguards before reopening the service. Measures include signing backup contracts with additional U.S. ATS providers such as Bruce and Moon, and introducing “one-click rollback” systems to swiftly unwind trades and return collateral in the event of disruption. Some firms have already begun order tests to ensure stability.
Although resuming the service does not require regulatory approval, securities firms are coordinating closely with the Financial Services Commission (FSC) to ensure investor protection.
“Investor demand is clear, and we expect trading to resume within the year once technical and regulatory preparations are complete,” an industry official said.
