Korean Exchanges Announce They Will Officially Launch After-Hours ETF Trading on September 14 (16:00–20:00), Despite Industry Concerns About the Wild Volatility of Leveraged Products in Recent Periods.
Of note, single-stock leveraged ETFs have been clearly excluded from the scope of after-hours trading. This arrangement evidently reflects the Korean exchange’s effort to strike a balance between risk control and innovation—extending trading hours and boosting market activity, while avoiding the amplification of risks from highly volatile products during the after-hours period, when liquidity is relatively weaker.
From a strategic perspective, this move by the Korean exchange targets two categories of competitors:
First, the alternative trading system Nextrade;
Second, cryptocurrency exchanges that operate around the clock.
In recent years, the 24/7 crypto market has significantly diverted attention from traditional stock investors. By extending services beyond regular trading hours, the Korean exchange is essentially competing head-on with the crypto industry’s “always-on” narrative.
That said, voices from the industry have previously called for delaying the rollout of this business, reflecting concerns about after-hours liquidity, market-making capabilities, and potential manipulation risks. Given that leveraged ETFs have repeatedly triggered trading halts, these worries are not unfounded.
Whether after-hours trading can truly attract incremental capital, or ends up as a low-liquidity “inconvenient” period, remains to be validated by market performance after September 14.
#韩国ETF #盘后交易 #Leveraged Products
Of note, single-stock leveraged ETFs have been clearly excluded from the scope of after-hours trading. This arrangement evidently reflects the Korean exchange’s effort to strike a balance between risk control and innovation—extending trading hours and boosting market activity, while avoiding the amplification of risks from highly volatile products during the after-hours period, when liquidity is relatively weaker.
From a strategic perspective, this move by the Korean exchange targets two categories of competitors:
First, the alternative trading system Nextrade;
Second, cryptocurrency exchanges that operate around the clock.
In recent years, the 24/7 crypto market has significantly diverted attention from traditional stock investors. By extending services beyond regular trading hours, the Korean exchange is essentially competing head-on with the crypto industry’s “always-on” narrative.
That said, voices from the industry have previously called for delaying the rollout of this business, reflecting concerns about after-hours liquidity, market-making capabilities, and potential manipulation risks. Given that leveraged ETFs have repeatedly triggered trading halts, these worries are not unfounded.
Whether after-hours trading can truly attract incremental capital, or ends up as a low-liquidity “inconvenient” period, remains to be validated by market performance after September 14.
#韩国ETF #盘后交易 #Leveraged Products