South Korea plans to raise the single-stock leveraged ETF trading threshold in September: the minimum trading unit will be raised to 20 shares

Comparatively, the Korea Exchange has formulated an amendment to the “Implementation Rules of the Marketable Securities Market Business Regulations” to raise the minimum trading unit for single-stock leveraged ETFs from the current 1 share to 20 shares, and ETN from 1 security to 20 securities, and is currently seeking market opinions.

According to reports, South Korea's financial supervisory authority originally planned to implement this measure in November, but considering that speculative transactions in single-stock leveraged products are heating up and need to cool down early, the exchange is pushing for implementation as soon as possible next month. In addition to increasing the number of trading units, South Korea's regulators will also strengthen investor protection measures. New individual investors are required to complete simulated trading for at least 5 trading days, 1 hour per day, and a cumulative total of 5 hours before participating in a single stock leveraged product transaction. (eDaily)