Coin World Network news: The Financial Investment Association of South Korea said that CEOs of 10 large asset management companies discussed raising the minimum deposit requirement for single-stock leveraged ETFs and staggering the timing of rebalancing trades. Attendees believe it is necessary to raise the minimum deposit requirement from the current level of 10 million won (about $6,714) and to strengthen liquidity providers’ role as a market stabilizer. The Financial Investment Association of South Korea cited data from the Korea Capital Market Institute, stating that the estimated stock trading volume needed for daily rebalancing of the relevant leveraged ETFs is about 700 billion to 2.1 trillion won.

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LSD_Balancer
· 4h ago
10 asset management CEOs meet to set rules, and retail investors can’t even touch the door; Web3 transparency is completely ineffective here.
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LiquidityFisherman
· 10h ago
Strengthen the role of an LP market maker? Meaning: get institutions to act as the bag-holder—that script, I’m familiar with.
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QueueJumper
· 11h ago
This trick of using a decentralized rebalancing schedule is smart—it helps avoid stampedes—but can liquidity providers really hold the line?
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BlockExplorer
· 11h ago
A $6,714 entry threshold is indeed outrageous—any office worker can just go all-in and bet three times long, and it’s no wonder they get liquidated.
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WoolHarvester
· 12h ago
The 10 million won threshold is too low—when retail investors use leverage to liquidate positions has become a common occurrence; does raising deposit requirements protect retail investors or protect institutions?
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ThereIsAChainInTheReflection.
· 12h ago
This data from South Korea is terrifying. The highest daily rebalancing reaches 21 trillion won, which is equivalent to draining the market’s liquidity entirely.
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RRHunter
· 12h ago
Leverage ETFs really should be regulated. With daily rebalancing volume ranging from 700 billion to 2.1 trillion, when they get hit and start dumping, retail investors can’t possibly run away.
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