The Korean Exchange's aftermarket, set to open next month from 4 p.m. to 8 p.m., is expected to exclude trading of exchange-traded funds (ETFs) and other exchange-traded products (ETPs).
According to a report by Yonhap News on August 27, financial authorities and the Korea Exchange are considering including ETPs in the list of products excluded from trading as they prepare a revised implementation guideline for the aftermarket.
If the revision is finalized, investors will be able to buy and sell regular stocks in the aftermarket, but trading of ETFs and exchange-traded notes (ETNs) will not be permitted.
The Korea Exchange plans to operate the aftermarket starting on September 14, following the regular trading hours. Initially, there were plans to include ETFs and ETPs in the aftermarket trading options.
However, recent concerns about increased volatility in semiconductor stocks, particularly those based on Samsung Electronics and SK Hynix, have led to the postponement of these plans. Critics have pointed out that single-stock leveraged and inverse ETFs based on these companies have exacerbated stock price fluctuations.
Industry insiders believe that the revised implementation guidelines, which will restrict ETP trading, could be announced within the next few days.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.