South Korea's Financial Services Commission Urges Intraday Rebalancing for Single-Stock Leveraged ETFs
2026-07-28 02:55:55
South Korea's Financial Services Commission Chairman Lee Eog-weon on Tuesday urged asset managers to spread single-stock leveraged ETF rebalancing trades across the entire trading day to curb sharp price swings caused by large orders before the close. According to Jin10, fund managers typically集中 most rebalancing between 3:20 p.m. and 3:30 p.m. local time to meet the goal of delivering twice the daily return of the underlying stock, and Lee said concentrating the trades before the close could amplify volatility, speed up rallies, and deepen declines. He also said some products involve more than 20 liquidity providers, leading to excessive turnover, more trading between them, and expanded arbitrage activity.
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