South Korea’s Financial Services Commission said tighter deposit rules for retail investors trading leveraged single-stock exchange-traded funds will take effect on July 31, earlier than the previously scheduled rollout in August. Under the new requirement, the minimum deposit will rise to 30 million won from 10 million won and must be paid in cash. Stocks, ETFs and bonds will no longer count toward the minimum threshold. The rule applies to purchases of leveraged single-stock ETFs listed both in South Korea and overseas. The commission also said companies that fail to complete system upgrades before July 31 will be advised to restrict new trades in these products. The update was carried by Cailian Press.
South Korea’s Financial Services Commission said tighter deposit requirements for retail investors trading leveraged single-stock exchange-traded funds will take effect on July 31, earlier than the previous August timetable.
Cash-only minimum raised
Under the new rule, the minimum deposit requirement will be set at 30 million won and must be provided in cash. The previous cash deposit requirement was 10 million won.
The commission said stocks, ETFs and bonds will no longer be counted toward the minimum deposit threshold.
Scope of the rule
The measure applies to purchases of leveraged single-stock ETFs listed in South Korea and in overseas markets.
For companies that do not complete system upgrades before July 31, regulators will advise them to restrict new trading in these products.
Cailian Press reported the development.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
