Sixteen single-stock leveraged exchange-traded fund products in the Korean market saw trading volume fall below 10 trillion won on the 27th, dropping to 7.4464 trillion won. The decline occurred ahead of new regulatory measures set to take effect on the 31st that will raise basic deposit requirements from 10 million won to 30 million won in cash. Trading volume for these products fell over 30% compared to the previous week's average of 11 trillion won and approximately 28% below the previous day's 10.2 trillion won, according to Korea Exchange data.
Trading Volume Drops Over 30% from Previous Week
The 16 products, which include 2 inverse products, accounted for 37.2% of total ETF trading volume of 19.9 trillion won on the 27th, falling below the 40% threshold. On the 23rd, their share of trading volume stood at 40%.
SOL SK Hynix Futures Single Stock Inverse 2X and KODEX SK Hynix Single Stock Leverage maintained the first and second positions in ETF trading volume. However, their trading volumes decreased to 2.61 trillion won and 2.6 trillion won respectively, down 1 trillion won and 500 billion won from the previous day.
TIGER SK Hynix Single Stock Leverage recorded 930.7 billion won in trading volume. KODEX and TIGER Samsung Electronics Single Stock Leverage products recorded 664.5 billion won and 420.5 billion won respectively.
SK Hynix and Samsung Electronics Products Lead Trading
SOL SK Hynix Futures Single Stock Inverse 2X closed at 11,255 won, down 5.89% from the previous day, but ranked first in individual investor net buying at 40.4 billion won. Excluding this product, no single-stock leveraged products appeared in the top 10 individual net buying list on the 27th.
In the securities market, Samsung Electronics rose 1.80% and SK Hynix rose 3.24% from the previous day. SK Hynix leveraged products showed gains of around 6%, while Samsung Electronics leveraged ETFs closed up around 3%.
New Deposit Requirements Take Effect on the 31st
Financial authorities moved the implementation date of supplementary measures for single-stock leveraged ETFs, including strengthened basic deposit requirements, from mid-August to the 31st. Starting on the 31st, the basic deposit requirement will increase from the current 10 million won to 30 million won. Substitute securities including stocks, ETFs, and bonds will be excluded from basic deposit calculations.
Under the new rules, investors who buy and sell stocks or ETFs with 3 million won in cash on the same day (T-day) will not be able to purchase single-stock leveraged products until the settlement date (T+2 days) unless they deposit additional cash.
FAQ
What caused the trading volume of single-stock leveraged ETFs to decline on the 27th?
Trading volume for 16 single-stock leveraged ETF products fell to 7.4464 trillion won on the 27th, ahead of new regulatory measures taking effect on the 31st. The volume dropped over 30% from the previous week's average of 11 trillion won.
What are the new deposit requirements for single-stock leveraged ETFs starting on the 31st?
Starting on the 31st, the basic deposit requirement will increase from 10 million won to 30 million won in cash. Substitute securities including stocks, ETFs, and bonds will no longer count toward the basic deposit calculation.
