Interactive Brokers Launches Korean Equity Trading Through Nextrade ATS

Interactive Brokers (Nasdaq: IBKR) has broadened its Asian market offering by adding South Korean equities through Nextrade, the country's first alternative trading system. The move, announced Tuesday, supplements the broker's existing access to the Korea Exchange with extended trading hours and an additional source of liquidity for clients.

The broker has switched on its IB SmartRouting system across both the Korea Exchange and Nextrade. The technology automatically sends each order to the venue showing the best available price at the time of execution, according to the company.

Nextrade covers around 650 securities from South Korea's KOSPI and KOSDAQ market segments. The ATS operates on a 12-hour schedule from 8:00 a.m. to 8:00 p.m. Korean Standard Time, with dedicated pre-market, regular and after-market sessions.

"By adding Nextrade alongside the Korea Exchange, we're giving clients greater flexibility and more ways to capture opportunities in one of Asia's most compelling markets," said David Friedland, Managing Director for Asia Pacific at Interactive Brokers. He added that the expansion reinforces the firm's commitment to broad, cost-efficient market access worldwide.

Interactive Brokers said it was the first major US broker to offer global investors direct access to Korean equities via the Korea Exchange. South Korea's equity market ranks among the world's largest by market capitalisation and lists major names such as Samsung Electronics, SK Hynix and Hyundai Motor.

The expansion comes as online brokers continue to compete for international trading volume by widening the range of overseas markets available to retail and institutional clients. For Interactive Brokers, the addition of Nextrade gives clients an alternative venue during extended hours and may improve execution quality through competition between trading platforms.