Korean brokerages discuss raising the minimum deposit requirement for leveraged chip-stock ETFs

robot
Abstract generation in progress

Odaily Planet Daily News: The Korea Financial Investment Association said that the CEOs of 10 major asset management companies in the country discussed investor protection measures for leveraged ETFs tied to individual stocks, including raising the minimum deposit requirement and dispersing rebalancing trade times. According to a statement released by the association, the participants agreed that it is necessary to raise the minimum deposit requirement for investing in such leveraged products from the current level of 10 million won (6714 USD).

To reduce the market impact of daily rebalancing trades (concentrated before the close), the asset management companies said efforts are needed to spread rebalancing activities across different time periods throughout trading days. They also noted that it is necessary to strengthen the role of liquidity providers as a market stabilizer.

Citing data from the Korea Capital Markets Research Institute, the Korea Financial Investment Association said that since the launch of the related leveraged ETFs, the estimated daily stock trading volume needed for rebalancing is approximately 700 billion–2.1 trillion won. (Sina Finance)

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments