South Korea Plans to Increase Single Stock Leveraged ETF Trading Threshold in September, with the Minimum Trading Unit Rising to 20 Shares

BlockBeats News, August 12th. The Korea Exchange has formulated a revised version of the "Securities Market Business Rules Implementation Regulations," increasing 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 soliciting market feedback.

It is reported that the South Korean financial regulatory authority originally planned to implement this measure in November. However, considering the increasing speculation in single-stock leveraged products, they need to cool down the market in advance. The exchange is aiming to implement this change as early as next month.

In addition to increasing the trading unit, the South Korean regulatory authority will also enhance investor protection measures. New retail investors entering the market must complete at least 5 trading days of simulated trading, with 1 hour per day and a total of 5 hours, before participating in single-stock leveraged product trading.