The Korea Stock Exchange (KSE) is proposing to tackle the problem of illiquid stocks, which are subject to large swings in price, by replacing the continuous auction system with periodic call auctions in illiquid shares. All bids and offers in illiquid stocks will be accepted, and then matched at a single price. The KSE is also pondering the introduction of market-makers to improve liquidity in thinly traded stocks.
Korea Stock Exchange Tackles Problem Of Price Volatility In Illiquid Stocks
The Korea Stock Exchange (KSE) is proposing to tackle the problem of illiquid stocks, which are subject to large swings in price, by replacing the continuous auction system with periodic call auctions in illiquid shares. All bids and offers in