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

Meritz Securities: Another Major Treasury Shares Cancellation

KOSPI200 Index Rebalance: Float Changes, Flows & Trades

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Clepsydra Capital

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

Event-Driven

<ul>
<li>From a trading perspective, rather than short-term short squeezing, we need to consider a position setup that aims for passive outflow that occurs on the effective date of SO adjustment.</li>
<li>The KOSPI 200 passive fund will do this adjustment trading (selling Meritz Securities) at the close of the previous day of the Changed Listing Day, estimated at 0.25-0.30x ADTV.</li>
<li>The KRX will likely announce the Changed Listing Date early next week.</li>
</ul>


From a trading perspective, rather than short-term short squeezing, we need to consider a position setup that aims for passive outflow that occurs on the effective date of SO adjustment.
The KOSPI 200 passive fund will do this adjustment trading (selling Meritz Securities) at the close of the previous day of the Changed Listing Day, estimated at 0.25-0.30x ADTV.
The KRX will likely announce the Changed Listing Date early next week.


A Shorting Setup on Meritz Securities for K200's Immediate SO Adjustment Due to Share Cancellation