South Korea moves higher cash deposit rule for single-stock leveraged ETFs to July 31
South Korea's FSC is accelerating and tightening retail cash-deposit requirements to 30 million won for single-stock leveraged ETFs, targeting newly approved products linked to Samsung Electronics and SK Hynix. The higher threshold raises participation friction and may reduce retail-driven turnover, dampening short-term liquidity and limiting volatility transmission from leveraged flows into the underlying names and related derivatives. Implementation is brought forward to July 31.
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South Korea’s Financial Services Commission said it will raise the minimum cash deposit requirement for retail investors trading single-stock leveraged ETFs to 30 million won ($20,437). The regulator also moved the start date forward from an earlier plan for August to July 31. The move is aimed at curbing speculative trading, targeting single-stock leveraged ETFs tied to Samsung Electronics and SK Hynix that were approved in late May, Reuters reported.