Trading in South Korea’s single-stock leveraged and inverse exchange-traded funds cooled sharply on Monday, July 27, according to Korea Exchange data cited by Odaily. The combined turnover of 16 products tied to Samsung Electronics and SK Hynix fell below KRW 10 trillion, landing at KRW 7.46 trillion. That was down 27% from the previous trading day and more than 30% below the prior week’s average daily volume. Their share of total ETF market turnover in South Korea also slipped to 36.9%.
Products linked to SK Hynix still dominated activity, accounting for about 70% of turnover across all single-stock leveraged and inverse ETFs. Market analysis said the decline in trading was mainly tied to upcoming financial regulations in South Korea. Starting July 31, retail investors who newly buy or add to positions in single-stock leveraged ETF and ETN products will be required to hold at least KRW 30 million in cash margin collateral. Regulators also plan to raise the minimum trading unit to curb high-frequency short-term trading.
Trading in South Korea’s single-stock leveraged and inverse ETFs fell below KRW 10 trillion on Monday, July 27, with combined turnover dropping to KRW 7.46 trillion, according to Korea Exchange data cited by Odaily.
The figure was down 27% from the previous trading day and more than 30% lower than the prior week’s average daily turnover. The products’ share of total ETF market trading in South Korea also fell to 36.9%.
The 16 products are tied to Samsung Electronics and SK Hynix. Among them, SK Hynix-related products continued to account for the bulk of activity, making up about 70% of total turnover in the single-stock leveraged and inverse ETF segment.
Market analysis said the slowdown in trading was mainly driven by incoming financial regulations in South Korea. From July 31, retail investors in the country who newly buy or increase positions in single-stock leveraged ETF and ETN products will need to hold at least KRW 30 million in cash margin collateral. Regulators also plan to raise the minimum trading unit to restrain high-frequency short-term trading.
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