ETP Deviation Disclosures Reach 661 in July, Approaching Record High Amid Market Volatility

According to the Korea Exchange, ETP (Exchange-Traded Products) deviation disclosures surged to 661 cases in the first nine trading days of July as of July 13, with 380 from ETFs and 281 from ETNs. The figures approach last month's record high of 673 cases recorded during the same nine-day period.

The spike reflects extreme volatility in global equity markets, making it difficult for liquidity providers to maintain tight bid-ask spreads. The number of deviation disclosures has escalated dramatically since March, when Middle East tensions sparked heightened market swings. Analysts cautioned that investors should avoid trading during periods of widening deviations, as prices may deviate significantly from underlying asset values.