SK Hynix suffers 2nd Nextrade flash crash, shares fall 30%
SK Hynix, a major South Korean chipmaker, saw its shares suddenly drop 30% on Nextrade this Thursday morning, the second flash crash in just a week.
The tumble happened after only 11 shares changed hands at 11,68,000 won each at 8am local time, but things bounced back during the pre-open session.
Nextrade to add volatility interruption mechanism
Last Tuesday's similar crash left nearly $60 million worth tied to derivative contracts in two minutes before prices subsequently paring losses.
These repeated swings are putting the spotlight on Nextrade's single-price system.
To calm things down, Nextrade plans to add a static volatility interruption mechanism starting September 14.
Meanwhile, the KOSPI index (which includes SK Hynix) has also been acting up, dropping 5% this week right after an 18% jump last Friday, leaving investors pretty uneasy about market stability.