---
title: Short Selling Impact in Korea
url: https://www.ml-quant.com/papers/ssrn/5138432/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5138432
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5138432
featured: 2025-03-05
citations: unknown
topic: Derivatives & Volatility
---


# Short Selling Impact in Korea

Aggressive short selling by market makers in Korea's single-stock futures market has improved liquidity, reduced volatility, and increased price efficiency.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5138432
- Identifier: SSRN 5138432
- Released: 2025-02-19
- First featured: Quant Letter No. 87 (2025-03-05): https://www.ml-quant.com/issues/2025-03-05/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Derivatives & Volatility

## Related

- [Modeling Loss-Versus-Rebalancing in Automated Market Makers via Continuous-Installment Options](https://www.ml-quant.com/papers/arxiv/2508.02971/): The study introduces a mathematical model that views a CFAMM position as a portfolio of perpetual American CI options, aiding liquidity providers in estimating future costs and optimizing parameters.
- [ARL-Based Multi-Action Market Making with Hawkes Processes and Variable Volatility](https://www.ml-quant.com/papers/doi/10-1145-3677052-3698695/): The study combines Adversarial Reinforcement Learning, Hawkes Processes, and variable volatility to enhance market-making strategies, showing improved adaptability in high-volatility conditions and better market simulations.
- [CLVR Ordering of Transactions on AMMs](https://www.ml-quant.com/papers/arxiv/2408.02634/): The study introduces the CLVR algorithm, which organizes transactions to reduce price volatility in Automated Market Maker trading, balancing price stability and inequality reduction.
- [Optimal Option Market Making and Volatility Arbitrage](https://www.ml-quant.com/papers/ssrn/4729290/): A novel market making model for options trading has been introduced, considering trader's volatility views and incorporating features like trading position limit, risk control, and simultaneous market making of multiple options.
- [Volatility Demand in Market Turmoil](https://www.ml-quant.com/papers/ssrn/5052438/): The study resolves the paradox of end users reducing their VIX call options during market downturns by examining the demand curves for market makers and end users, emphasizing the market makers' role in market equilibrium.
- [Option Market Makers' Hedging Model](https://www.ml-quant.com/papers/ssrn/4936978/): The model suggests that the way Option Market Makers manage their option inventory can cause unpredictable changes in stock prices, with their net option position being a key predictor of SPX futures' end-of-day return.