Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Specifics of Korea's Official Short-Selling Regulations, Announced This Morning

Korea's Finalized Short-Selling Rules Include Limiting 90-Day Short Position Extensions

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

Korea Stock Exchange Kospi Index / Event-Driven

Korea Stock Exchange Kospi Index (KOSPI INDEX)

<ul>
<li>The rule's real impact isn't exposing which institutions are shorting stocks, as much of Korea's short-selling is done via swaps (TRS).</li>
<li>The key takeaway is that more stocks require mandatory disclosure as lowering the threshold to 0.01% makes it tougher for local brokers to avoid reporting.</li>
<li>Local and foreign institutions use a single Prime Brokerage Service (PBS) for borrowing efficiency, especially with smaller stocks, aiding in retail access and revealing short-selling strategies amid new disclosure rules.</li>
</ul>


The rule's real impact isn't exposing which institutions are shorting stocks, as much of Korea's short-selling is done via swaps (TRS).
The key takeaway is that more stocks require mandatory disclosure as lowering the threshold to 0.01% makes it tougher for local brokers to avoid reporting.
Local and foreign institutions use a single Prime Brokerage Service (PBS) for borrowing efficiency, especially with smaller stocks, aiding in retail access and revealing short-selling strategies amid new disclosure rules.


Korea's New Short-Selling Balance Reporting Rules Starting December 1: Key Trading Insights