星球日报|Jul 28, 2026 02:57
[South Korea Financial Services Commission Calls for Dispersing Single-Stock Leveraged ETF Rebalancing Transactions Throughout the Trading Day]
Odaily Planet Daily reports, according to Yonhap News Agency, South Korea Financial Services Commission Chairman Lee Eog-weon on Tuesday urged asset management companies to disperse single-stock leveraged ETF rebalancing transactions throughout the trading day to curb sharp price fluctuations caused by large orders placed before market close. Fund management companies typically concentrate most rebalancing operations between 3:20 PM and 3:30 PM local time to achieve the investment goal of doubling the daily returns of the underlying stock. If these transactions are concentrated near market close, they may accelerate upward trends and deepen downward movements. Lee Eog-weon stated: 'The market is concerned that concentrating rebalancing operations before market close amplifies market volatility. Transaction timing needs to be dispersed.' He also pointed out that some products, involving more than 20 liquidity providers, lead to excessive turnover, increased trading among themselves, and expanded arbitrage activities.
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