SK C&C begins to construct S.Korea's first ATS

SK C&C, an information and communications technology affiliate of South Korea’s SK Group announced on Wednesday it has started construction on the country's first Alternative Trading System (ATS), due to launch in the latter half of next year.

The work is part of a multi-party trading system project for Nextrade, a preparatory corporation established in November 2022 for the ATS.

Nextrade was jointly incorporated by 34 shareholders, including seven securities companies such as Mirae Asset Securities and Samsung Securities Co., 19 other securities companies, three securities-related institutions, and four IT firms.

SK C&C's project aims to support the multi-party trading, brokering, leading, and agency operations of listed securities and depositary receipts (DR) for the ATS, scheduled to begin once Nextrade acquires authorization next year.

The tech company's plans include building an entire trading system necessary for multi-party product trading contracts and operations, including a 'channel and matching engine system' for transaction processing.

This also involves the creation of an 'information distribution system' to manage investment information in conjunction with the Korea Exchange (KRX) and Korea Securities Depository.

A unique aspect of the ATS is its 'extended trading hours beyond regular trading times.' The system will enable working stock investors to trade conveniently by allowing for trades after the market closes and considering overseas market openings.

To protect critical system and data assets and ensure business continuity, SK C&C will establish a 'disaster recovery (DR) center'. The company will also devise a data backup system to reduce backup times and quickly recover from potential disruptions, fortifying the system against security threats.

Write to Jin-Won Kim at jin1@hankyung.com