Trading in single-stock leveraged exchange-traded funds fell sharply on the first day of South Korea’s new restrictions, according to local media and Korea Exchange data cited on July 31. The combined turnover of 16 single-stock leveraged and inverse ETFs came in at KRW 3.3071 trillion, down from KRW 12.4485 trillion a day earlier, a drop of 75.3%.
Compared with the July daily average of KRW 12.27 trillion, the first day under the tighter regulatory framework showed a clear pullback in trading activity. Excluding inverse products, turnover in 14 major single-stock leveraged ETFs also declined, falling 64.4% from KRW 6.9354 trillion to KRW 2.4686 trillion.
The figures point to an immediate contraction in fund flows after South Korean financial regulators moved to tighten controls on single-stock leveraged ETF products.
Trading in single-stock leveraged ETFs in South Korea dropped sharply on the first day of new restrictions introduced by financial regulators, according to local media reports on July 31.
Data from the Korea Exchange (KRX) showed that turnover in 16 single-stock leveraged and inverse ETFs totaled KRW 3.3071 trillion on the first day of the new rules. That was down 75.3% from KRW 12.4485 trillion the previous day.
Against the July daily average of KRW 12.27 trillion, the numbers also showed a clear contraction in trading activity after the tighter controls took effect.
Excluding inverse products, turnover in 14 major single-stock leveraged ETFs fell 64.4%, dropping from KRW 6.9354 trillion a day earlier to KRW 2.4686 trillion.
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