Korea Exchange (KRX) has told major asset managers they must consult the exchange in advance of any changes to keywords used to screen index constituents for ETFs, market sources said. KRX warned keyword-based indexing often relies on qualitative judgment and cited instances of frequent index turnover, saying changes to constituent-selection keywords may be treated as a change to index calculation methodology and, under current rules, could trigger delisting. The guidance follows industry contro

Korea Exchange (KRX) has told major asset managers they must consult the exchange in advance of any changes to keywords used to screen index constituents for ETFs, market sources said. KRX warned keyword-based indexing often relies on qualitative judgment and cited instances of frequent index turnover, saying changes to constituent-selection keywords may be treated as a change to index calculation methodology and, under current rules, could trigger delisting. The guidance follows industry controversy after Mirae Asset Global Investments’ TIGER Semiconductor TOP10 ETF altered index rules ahead of a scheduled rebalance to replace constituents.