South Korean securities firms discuss raising minimum deposit requirements for chip stock leveraged ETFs.
1 hours ago
The Korea Financial Investment Association (KFIA) announced that CEOs of 10 major South Korean asset management firms have discussed investor protection measures for individual stock leveraged ETFs, including raising minimum deposit requirements and staggering rebalancing trading times. Per the association’s statement, attendees agreed it is necessary to lift the minimum deposit threshold for investing in such leveraged products from the current 10 million won (US$6,714). They also emphasized the need to strengthen the market stabilizer function of liquidity providers. Citing data from the Korea Capital Market Institute, the KFIA noted that since the launch of related leveraged ETFs, daily stock trading volume required for rebalancing is estimated at between 700 billion won and 2.1 trillion won.
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