South Korea regulator requires ₩30m deposit for single-stock leveraged ETFs
South Korea's top financial regulator is making it tougher for everyday investors to trade single-stock leveraged ETFs.
Starting July 31, you will need to have a cash deposit of 30 million won (about $20,437) if you want in.
The rule was supposed to start in August but got pushed up because these high-risk products have been causing some wild market swings.
Curbing speculation to protect investors
The goal here is to cool off speculative trading and protect people from big losses.
Leveraged ETFs can amplify your gains, or your losses, in a single day, so they are not for the faint-hearted.
These funds, tied to big names like Samsung Electronics and SK Hynix, only received regulatory approval in late May but have already sparked enough volatility that regulators felt they had to step in fast.