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Single-stock leverage regulation starts; how far will additional measures go?

South Korea is tightening regulation of single-stock leveraged products, including setting per-investor limits and raising transaction costs to curb excessive trading. Asset managers and securities firms agreed to spread rebalancing trades beyond the close and reduce liquidity provider volume while managing ETF price-to-NAV gaps. The government raised the minimum deposit for single-stock leveraged ETFs and ETNs to 30 million won, effective July 31, and outlined further steps including investor education and legal grounds to adjust leverage in emergencies.