South Korea's Financial Services Commission chair Lee Eog-weon urged asset managers to disperse single-stock leveraged ETF rebalancing across the trading day to curb sharp price swings from concentrated pre-close orders, Yonhap reported. Fund manager

2026-07-28

South Korea's Financial Services Commission chair Lee Eog-weon urged asset managers to disperse single-stock leveraged ETF rebalancing across the trading day to curb sharp price swings from concentrated pre-close orders, Yonhap reported. Fund managers typically execute most rebalances between 15:20 and 15:30 local time to target 2x daily returns; Lee warned such clustering can accelerate rallies and deepen sell-offs. He added some products involve more than 20 liquidity providers, contributing to excessive turnover, increased inter-provider trading and amplified arbitrage activity.