Within two trading days of a regulator-imposed margin increase, trading in
single-stock leveraged and inverse ETFs on KOSPI has collapsed. Korea Exchange
said on the 3rd that turnover in 16 KOSPI-listed single-stock leveraged/inverse
ETFs tied to Samsung Electronics and SK Hynix was 1.2388 trillion won, down
58.6% from 2.9907 trillion won on the implementation day and about one-tenth of
the 12.4485 trillion won traded on the last session before the change.
Regulators raised the minimum cash margin for single-stock leveraged ETFs
investors from 10 million won to 30 million won. Retail trading in these
products fell to 250.7 billion won, under a quarter of 929.9 billion won on the
implementation day.
