South Korea Tightens Leverage on ETFs on First Day, Trading Volume Plunges 75%

BlockBeats News, July 31st - According to Korean media, on the first day of the South Korean financial regulatory authority's implementation of restrictions on individual stock leveraged ETFs, the trading volume of related products plummeted to one-fourth of the previous day's level.

Trading data for individual stock leveraged ETFs on the Korean Exchange (KRX) today showed that on the first day of the new rule implementation, the total trading volume of 16 individual stock leveraged and inverse ETFs was 3.3071 trillion Korean won. This number plummeted by 75.3% compared to the previous day (12.4485 trillion Korean won). Compared to the July daily average trading volume of 12.27 trillion Korean won, the strong regulatory measures by the financial regulatory authority have evidently had an immediate impact on suppressing fund flows.

If the inverse products are excluded, the trading volume of the 14 main individual stock leveraged ETFs also decreased by 64.4%, falling from the previous day's 6.9354 trillion Korean won to 2.4686 trillion Korean won.