NEW YORK - Leverage Shares plc, an issuer of exchange-traded products (ETPs), has announced an intraday rebalance of its 3x Long Moderna (NASDAQ:MRNA) ETP following a significant drop in the price of Moderna Inc . (NASDAQ:BMV:MRNA). The rebalance occurred on Monday morning after Moderna's stock price fell to $33.25, a decline of 21.30% from its previous closing price of $42.25.
This price movement triggered the rebalance mechanism set within the iSTOXX Leveraged 3x MRNA Index methodology, which mandates an adjustment when the reference asset's price crosses a threshold of -16.67%. The rebalance was executed five minutes after the trigger time at 09:30:00 EST, over a 10-minute window, using the trigger value as the reference price.
As a result of the intraday rebalance, the value of the ETP Securities was adjusted to a new rebalanced ETP Security Value of $0.06396, based on an average price of $32.42220 achieved during the rebalance process.
Leverage Shares' action underscores the inherent volatility of leveraged ETPs, which are designed to provide multiple times the daily performance of the underlying asset or index. Such products are often subject to intraday rebalances to maintain their investment objectives, especially during periods of significant market movement.
Investors and holders of the ETP Securities are encouraged to review the details provided in the notice and consult with their independent professional advisers if they have questions or concerns about the impact of the rebalance on their holdings. The terms used in the notice are defined according to the prospectuses for the ETP Securities, which can be found on the Leverage Shares website.
This report is based on a press release statement and aims to present the facts surrounding the intraday rebalance of Leverage Shares' 3x Long Moderna ETP.
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