South Korea's FSC Chair Urges Spreading Single-Stock Leverage ETF Rebalancing Throughout Trading Day

According to Yonhap News Agency, South Korea's Financial Services Commission Chair Lee Eog-weon on Tuesday urged asset managers to spread single-stock leverage ETF rebalancing trades throughout the trading day to curb sharp price swings caused by concentrated orders before market close. Fund managers typically conduct most rebalancing operations between 3:20 p.m. and 3:30 p.m. local time to achieve investment targets of double the daily returns of underlying stocks. "Market concerns exist that concentrated rebalancing before close could amplify volatility. Trading timing needs to be distributed," Lee stated.
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