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NEW YORK - Leverage Shares plc has conducted an intraday rebalance of its 3x Square ETP Securities (ISIN:XS2675718139) following a significant drop in the trading price of Square, Inc. (NYSE:SQ), the reference asset. The rebalance occurred on Friday, May 2, 2025, after Square’s share price fell by 22.49% to a trigger value of $45.33, crossing the threshold set by the iSTOXX Leveraged 3x SQ Index.
The price decline of Square, Inc. surpassed the -16.67% intraday threshold, prompting the rebalance in accordance with the index methodology. The rebalancing process started five minutes after the trigger time of 09:30:00 EST and lasted for a 10-minute period, with the new ETP Security Value being set at $1.93823, based on an average price of $44.94113 achieved during the rebalance.
Leverage Shares’ exchange-traded products (ETPs) are designed to offer leveraged exposure to individual equities. The 3x Square ETP seeks to provide three times the daily performance of Square, Inc. When the underlying asset experiences significant volatility, an intraday rebalance is triggered to align the ETP with its target leverage ratio.
Holders of the ETP Securities are advised to review this development and may wish to consult their own independent professional advisers for further guidance. Terms not defined in this notice are to be referenced in the Prospectuses available on the Leverage Shares website.
This rebalancing action underscores the inherent risks and operational mechanisms associated with leveraged ETPs, which are intended for knowledgeable investors who can monitor and manage their holdings actively. The information for this article is based on a press release statement.
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