Korea Plans to Raise Minimum Trading Unit for Single-Stock Leveraged ETFs to 20 Shares in September

Odaily reported that the Korea Exchange has drafted amendments to the "Securities Market Business Regulations Implementation Rules," which will raise the minimum trading unit for single-stock leveraged ETFs from the current 1 share to 20 shares, and for ETNs from 1 security to 20 securities. The exchange is currently seeking market feedback.

It is understood that South Korean financial regulators originally planned to implement this measure in November, but given the rising speculative trading in single-stock leveraged products and the need to cool it down ahead of schedule, the exchange is pushing for implementation as early as next month. In addition to raising the trading unit, regulators will also strengthen investor protection measures. New retail investors must complete at least 5 trading days of simulated trading—1 hour per day, totaling 5 hours—before participating in single-stock leveraged product trading. (EDaily)