All Four Crude Oil Futures ETNs to Trade in Single Price Sessions Starting from the 13th

Indefinite Application Until the Point of Discrepancy Rate Normalization

Single-price trading designated stocks (Provided by Korea Exchange)

[Asia Economy Reporter Minwoo Lee] Four exchange-traded notes (ETNs) related to West Texas Intermediate (WTI) crude oil futures, whose price deviations from the actual crude oil price have become excessively large, will be switched to call auction trading.

The Korea Exchange announced on the 10th that it will change the trading method of four ETNs?'Samsung Leverage WTI Crude Oil Futures ETN,' 'Shinhan Leverage WTI Crude Oil Futures ETN(H),' 'QV Leverage WTI Crude Oil Futures ETN(H),' and 'Mirae Asset Leverage Crude Oil Futures Mixed ETN(H)'?from continuous trading to call auction trading.

This decision was made because, by the market close on that day, the premium/discount rate based on the real-time indicative value exceeded 30%, while the liquidity providers' (LP) holding ratio was below 20%, or due to other personnel and physical constraints that hindered smooth submission of LP quotes. The exchange had previously announced the switch to call auction trading for items meeting these criteria the day before.

In fact, the Samsung Leverage WTI Crude Oil Futures ETN, which had the highest trading volume, showed a premium/discount rate of 82.6% based on the closing price. Other products also exhibited premium/discount rates in the 50-60% range.

When call auction trading is implemented, the exchange collects bids every 30 minutes and executes trades at a single price (consolidated price). This trading method will continue until the exchange judges that the premium/discount rate has returned to a normal level.

Under call auction trading, bids are collected over a set period and trades are executed at a single consolidated price. The call auction trading will remain in effect indefinitely until release conditions are met. The release conditions include: ▲a premium/discount rate below 15% for three consecutive trading days ▲LP holding ratio of 20% or more through additional issuance (including the quantity scheduled for additional listing the next day) ▲or the lifting of a trading suspension for a security that has been suspended for two or more trading days due to premium/discount rate issues.

This content was produced with the assistance of AI translation services.