Korean brokerages discuss raising the minimum deposit requirement for leveraged ETFs in semiconductor stocks

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The Korea Financial Investment Association said the CEOs of 10 large asset management companies in the country discussed investor-protection measures for investors in single-stock leveraged ETFs, including raising minimum deposit requirements and diversifying the timing of rebalancing trades. According to the association’s statement, 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 ($6,714). They also noted that the market stabilizer role of liquidity providers needs to be strengthened. The Korea Financial Investment Association cited data from the Korea Capital Markets Research Institute, saying that since the launch of the related leveraged ETFs, the estimated stock trading volume required for daily rebalancing is about 700 billion to 2.1 trillion won. (China Business News)
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