Business & Finance
Korea Volatility Spike Ebbs as Leveraged Trades Are Flushed Out
Key Points
Korea Volatility Spike Ebbs as Leveraged Trades Are Flushed Out The most extreme phase of South Korea’s stock-market turmoil may be over after a historic selloff flushed out leveraged positions and regulatory curbs sent trading in some of the riskiest products plunging. An index of volatility in Korean shares fell to a two-month low last week, from a record high in June. The stabilization followed forced liquidations that helped reduce outstanding margin debt, while tighter rules on...
Korea Volatility Spike Ebbs as Leveraged Trades Are Flushed Out
The most extreme phase of South Korea’s stock-market turmoil may be over after a historic selloff flushed out leveraged positions and regulatory curbs sent trading in some of the riskiest products plunging.
An index of volatility in Korean shares fell to a two-month low last week, from a record high in June. The stabilization followed forced liquidations that helped reduce outstanding margin debt, while tighter rules on leveraged exchange-traded funds also cut trading and assets in products tied to chip giants Samsung Electronics Co. and SK Hynix Inc.