Deposit Requirement for Single-Stock Leveraged ETFs on Samsung Electronics and SK Hynix Raised to 30 Million Won
Tightened regulations on leveraged ETFs for Samsung Electronics and SK Hynix, expanding investor protection Try reducing volatility risk by raising deposit requirements and order units, and managing premium/discount rates
The government has decided to raise the base deposit required for investors in singlestock leveraged exchangetraded funds (ETFs) for Samsung Electronics and SK hynix from 10 million won to 30 million won. This measure is intended to reduce increased volatility in the domestic stock market and strengthen investor protection.
The Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange announced these supplementary measures after a market situation review meeting on the 16th. The minimum order unit will also increase from 1 share to 20 shares, and the preinvestment education time will be expanded from 2 hours to 3 hours starting next month.
The authorities also decided to tighten the standards for managing the tracking error, the gap between an ETF's actual value and its market price, and to apply more quickly the designation process for products with excessive tracking error as investment caution items. The listing of new singlestock leveraged products will also be suspended for the time being.