By Lee Yeon-woo
With response plan ready, after-hours US trading platform eyes daytime trading relaunch in Korea.
Blue Ocean Technologies CEO and President Brian Hyndman apologized to Korean investors who suffered financial losses after the abrupt cancellation of the system on Aug. 5, 2024, vowing to prevent such an incident from happening again.
“We didn’t handle it very well — first, because we canceled a variety of trades, and second, we didn’t have great support on the ground here. We’re so apologetic about what happened back in August,” Hyndman told The Korea Times in a one-on-one interview, Thursday.
“We feel like we’re in a better position now to earn the trust of the brokers and deliver them a product that we feel like is industrial grade. Our new system has the reliability, stability and capacity that they demand, and now we have the support structure,” he added.
Hyndman was visiting Korea to meet local brokerages and work toward resuming daytime trading services. Domestic brokerages had offered a daytime trading service, allowing U.S. stock trading from 9 a.m. to 4:30 p.m., (Korea Standard Time) amid growing investor interest. However, since the order cancellation in August 2024, they have suspended the service, citing “investor protection.”
On Aug. 5, 2024, the U.S.-based alternative trading system experienced a surge of successive sell orders from around the world, fueled by market concerns over a potential U.S. recession. This influx overwhelmed Blue Ocean’s trading system, causing it to malfunction. According to financial authorities, the total volume of canceled transactions in Korea reached 630 billion won ($435 million), affecting approximately 90,000 investor accounts.
While local investors have sought compensation from brokerages, no resolution has been reached. Blue Ocean Technologies maintains that it bears no liability under U.S. regulations, while domestic securities firms remain hesitant, arguing that offering advance compensation without clear responsibility could constitute a breach of trust.
The incident was particularly critical for Blue Ocean Technologies, as 65 percent of its business came from Korea in August 2024.
Hyndman said he visited Korea in September 2024 to gather feedback and has now returned with concrete plans — improved technology, a local presence and an accommodation policy, which includes financial compensation of up to $250,000 per month.
“The prior technology had a capacity of 35 million messages on any given night. The new technology has the capacity to handle 35 billion messages. So we feel very, very confident about the capacity and the fact that we’ll never cancel trades again,” he said.
On Jan. 22, Blue Ocean Technologies opened a new office in Seoul and appointed Kim Suk-joon as vice president and head of North Asia-Pacific. Kim, former representative director of the London Stock Exchange Group Korea, has over 25 years of experience in financial markets. He specializes in global equity and derivatives exchange trading.
“More than 20 brokers in Korea are trading on our platform. Having a local representative on the ground is crucial for providing real-time support and updates,” Hyndman said.
Kim emphasized that daytime trading is an important tool for Korean investors to generate profits and hedge risks. “Major market-moving events happen in Asia during U.S. nighttime hours (daytime in Asia), creating opportunities before the U.S. market opens. Having access to those opportunities — or missing them — makes a significant difference.”
“While daytime trading benefits our business, it is ultimately an essential tool for investors trading U.S. stocks,” Kim said. “We look forward to rebuilding trust and forming long-term partnerships with local brokerages.”
