Starting point for change
South Korea's Financial Services Commission has announced that stricter deposit requirements for retail investors trading leveraged exchange-traded funds (ETFs) tied to single stocks will be implemented on July 31, moving the date forward from the original August timeline.
Details of the requirement
The cash deposit requirement has been raised from 10 million won to 30 million won, and stocks, ETFs, and bonds will no longer be counted toward meeting the minimum deposit.
Scope of application
The new rules apply to purchases of leveraged ETFs listed both domestically in South Korea and overseas that are linked to single stocks.
Implementation notes
Companies that fail to complete system upgrades by July 31 will be advised to restrict new trading in these products.
The adjustment aims to strengthen investor protection and market stability by ensuring sufficient capital is held for high-risk leveraged products.
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