The Technology Behind Korea’s Circuit Breaker: How Automated Trading Systems Responded to the Hormuz Shock
South Korea’s KOSPI triggered its circuit breaker on Wednesday after falling as much as 12% in its worst single-day decline since the 2008 financial crisis. The circuit breaker, a regulatory technology mechanism that halts trading when index-level declines exceed defined thresholds, activated at the 8% level for a 20-minute cooling period before trading resumed and…