The resumption of daytime U.S. stock trading (Day Market) services by domestic securities firms, which has been suspended since August due to a system failure, is unlikely to happen within this year.
This is because discussions between Blue Ocean, the U.S. nighttime alternative trading system (ATS) responsible for implementing this service, and domestic securities firms are facing repeated difficulties in devising measures to prevent a recurrence of the issue.
According to the securities industry on the 28th, the Korea Financial Investment Association (KOFIA) recently sent an official letter to the U.S. Financial Industry Regulatory Authority (FINRA), requesting a fact-check on whether Blue Ocean’s response to the failure in August was appropriate.
Industry insiders see this letter as a strategic move by KOFIA to indirectly pressure Blue Ocean.
On August 5, Blue Ocean unilaterally canceled all trades entered after 2:45 p.m. as a surge in investor orders overwhelmed the system amid global stock market turbulence.
As a result, all profits and losses from daytime trading in Korea were nullified, and many investors suffered losses because they could not sell their shares in time during the U.S. market downturn.
According to the Financial Supervisory Service, the total amount of canceled trades due to this system failure was approximately 630 billion KRW across 90,000 accounts.
Since then, domestic securities firms have completely suspended daytime trading services and have demanded Blue Ocean to implement measures to prevent a recurrence before resuming services. However, there has been no progress.
Blue Ocean reportedly maintains that, although it regrets the failure, it took all legally appropriate measures at the time and sees no need for additional actions.
The industry expects that even if FINRA responds, further inquiries may be necessary, and additional negotiations between KOFIA, domestic securities firms, and Blue Ocean will likely push the timeline beyond the end of the year.
A source from the securities industry commented, "What we want from Blue Ocean is substantive actions, such as technical and institutional improvements, and assurances about system stability. We believe it’s unavoidable that the service may not resume by the end of the year."
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US Stock Weekly Trading Halt Extended…'Unlikely to Resume This Year'
The resumption of daytime U.S. stock trading (Day Market) services by domestic securities firms, which has been suspended since August due to a system failure,
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