Korean media: South Korean brokerages are considering tightening investment rules for single-stock leveraged ETFs; the minimum margin requirement may be increased by five times

robot
Abstract generation in progress
Golden Finance reported that on July 15, according to The Korea Herald, the Korean brokerage industry has agreed to tighten investor protection rules for single-stock leveraged ETFs. The Korea Financial Investment Association convened an emergency meeting with the CEOs of major brokerages on Tuesday local time to assess the leveraged ETF market for Samsung Electronics and SK hynix and discuss response measures. The participating institutions generally agreed to raise the minimum margin requirement to curb retail investors’ excessive use of leverage. One proposal currently under discussion is to raise the minimum margin threshold from 10 million Korean won to 50 million Korean won. The institutions also agreed to provide more targeted risk warnings based on investors’ age and portfolio situation, and to strengthen investor education to help investors better understand the structure and risks of these products. In addition, the industry agreed to spread rebalancing and hedging trades more evenly across the entire trading session to reduce market shocks caused by concentrated buying and selling before the close. (Jin Ten)
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
  • Pinned