Korea Tightens Leveraged ETF Rules, Trading Volume Plunges 75% on First Day

Odaily News According to Korean media reports, on the first day of the financial regulator's restrictions on single-stock leveraged ETFs, the trading volume of related products plummeted to one-quarter of the previous day's level. Data from the Korea Exchange (KRX) on today's single-stock leveraged ETF trading shows that on the first day of the new rules, the total trading volume of 16 single-stock leveraged and inverse ETFs stood at 3.3071 trillion Korean won. This figure marks a sharp decline of 75.3% from the previous day's 12.4485 trillion Korean won. Compared with the daily average trading volume of 12.27 trillion Korean won in July, the financial regulator's strong control measures have clearly had an immediate effect in curbing capital flows.

Excluding inverse products, the trading volume of 14 major single-stock leveraged ETFs also fell 64.4%, dropping from 6.9354 trillion Korean won the previous day to 2.4686 trillion Korean won.