The financial investment industry is promoting the distribution of rebalancing trades. The focus is on spreading out rebalancing transactions, which have traditionally concentrated around market close, to both during trading hours and after the market closes. This strategy aims to minimize the impact of rebalancing volumes on underlying assets.
To ensure market stability and protect investors, the industry has developed a self-regulatory response plan. Additionally, there is a commitment to continue joint efforts to reduce trading volumes of liquidity providers (LPs) and closely manage discrepancies.
Investor risk disclosures and guidance will also be strengthened. The industry plans to support the smooth implementation of government measures, including raising the minimum deposit and enhancing investor education. Starting August 31, individual investors looking to make new investments or additional purchases in domestic and foreign listed single-stock leveraged products will need to hold at least 30 million won in cash.
The Financial Investment Association will monitor the implementation and effectiveness of investor protection measures, such as the increase in minimum deposits. Furthermore, it plans to discuss necessary actions with the industry based on changes in trading volumes and market volatility affecting individual investors.
Finally, the Financial Investment Association and the industry will continuously monitor market trends and cooperate with the government and relevant agencies on market stabilization measures.
Hwang Seong-yeop, chairman of the Financial Investment Association, stated, "The industry is acutely aware of the recent increase in market volatility and the losses experienced by some investors. We will swiftly implement self-regulatory measures such as distributing rebalancing trades and managing LP trading volumes, and we will work closely with the government to ensure market stability and protect investors."
* This article has been translated by AI.
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