Korean exchanges announced that they will officially launch after-hours trading for ETFs on September 14 (16:00-20:00), but single-stock leveraged ETFs are excluded from the scope of after-hours trading.
Of note, this decision was made amid industry concerns about the recent wild volatility of leveraged products. Previously, the Korean industry had urged exchanges to postpone the rollout of this business, but the Korean exchange ultimately proceeded as planned.
From a strategic perspective, the move by the Korean exchange is intended to compete with alternative trading system Nextrade and all-day crypto exchanges. Extending trading hours and improving market liquidity are clearly countermeasures for traditional exchanges to address the impact of emerging trading platforms.
However, the high volatility of leveraged ETFs has long been a focal point of market debate. By choosing to exclude single-stock leveraged ETFs from after-hours trading, the Korean exchange may also be considering risk control, since after-hours liquidity is relatively lower and can more easily magnify price fluctuations.
For ordinary investors, the start of after-hours trading means more trading opportunities, but it also requires more careful risk assessment—especially maintaining sufficient vigilance toward leveraged products.#韩国交易所 #ETF #After-hours trading
Of note, this decision was made amid industry concerns about the recent wild volatility of leveraged products. Previously, the Korean industry had urged exchanges to postpone the rollout of this business, but the Korean exchange ultimately proceeded as planned.
From a strategic perspective, the move by the Korean exchange is intended to compete with alternative trading system Nextrade and all-day crypto exchanges. Extending trading hours and improving market liquidity are clearly countermeasures for traditional exchanges to address the impact of emerging trading platforms.
However, the high volatility of leveraged ETFs has long been a focal point of market debate. By choosing to exclude single-stock leveraged ETFs from after-hours trading, the Korean exchange may also be considering risk control, since after-hours liquidity is relatively lower and can more easily magnify price fluctuations.
For ordinary investors, the start of after-hours trading means more trading opportunities, but it also requires more careful risk assessment—especially maintaining sufficient vigilance toward leveraged products.#韩国交易所 #ETF #After-hours trading