South Korea's 10 Major Brokerages Raise Leverage ETF Deposit Requirements on July 14

According to Maeil Business Newspaper, South Korea's Financial Investment Association and 10 major brokerages held an emergency meeting on July 14 to address risks from single-stock leveraged ETFs. The group decided to raise the basic deposit requirement for leveraged ETF trading from 10 million Korean won, though the exact increase amount is still under review. Brokerages will also disperse daily rebalancing trades and strengthen investor education on product risks. Goldman Sachs separately noted that mechanical deleveraging from recently launched leverage ETFs amplified market volatility, with some 2x leverage ETFs backed by semiconductor stocks like Samsung Electronics falling over 30 percent in a single day.
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