The Korea Exchange (KRX) is seeking clarity on participation rules for after-hours trading in exchange-traded funds, as the industry pushes back against regulatory uncertainty.
The move comes as the exchange operator attempts to stabilize market mechanics for single-stock leveraged ETFs, which have faced intense scrutiny since their introduction.
The review of after-hours participation follows a period of significant regulatory turbulence in South Korea's ETF market.
Top policymakers recently issued a formal apology for the launch of single-stock leveraged ETFs, acknowledging that the products were introduced without sufficient scrutiny.
The admission highlighted concerns about market stability and investor protection, prompting authorities to consider limits on the share of these leveraged products that can be held in individual investment portfolios.
Industry participants have expressed frustration with the evolving regulatory landscape, arguing that unclear rules hinder efficient price discovery and liquidity provision.