Business & Finance
South Korea Speeds Up Leveraged ETF Deposit Rule to July 31
Key Points
South Korea Speeds Up Leveraged ETF Deposit Rule to July 31 South Korea is moving up the date it had planned to lift the minimum cash deposit requirement for investors in leveraged exchange-traded funds to July 31, a measure to curb demand for the products that are blamed for amplifying stock volatility. Once the requirement kicks in next Friday, Korean traders placing new orders in single-stock leveraged ETFs listed at home — or ones abroad, while using domestic brokerage accounts — will...
South Korea Speeds Up Leveraged ETF Deposit Rule to July 31
South Korea is moving up the date it had planned to lift the minimum cash deposit requirement for investors in leveraged exchange-traded funds to July 31, a measure to curb demand for the products that are blamed for amplifying stock volatility.
Once the requirement kicks in next Friday, Korean traders placing new orders in single-stock leveraged ETFs listed at home — or ones abroad, while using domestic brokerage accounts — will have to place a minimum cash deposit or have an account balance of at least 30 million won ($20,332), the Financial Services Commission said in a statement. Earlier this month, the authorities said the requirement would be implemented starting Aug. 5.