Korea's Financial Services Commission will suspend listings of new single-stock leveraged ETFs and ban related advertising as a risk-control step targeting products tied to Samsung Electronics and SK Hynix. Initial margin for these ETFs will rise from 10 mln won to 30 mln won, effective in August; only cash will count as margin and non-cash collateral (e.g. government bonds) will no longer be accepted. The FSC will tighten securities firms' ETF premium/discount management standard from 3% to 2%.

Korea's Financial Services Commission will suspend listings of new single-stock leveraged ETFs and ban related advertising as a risk-control step targeting products tied to Samsung Electronics and SK Hynix. Initial margin for these ETFs will rise from 10 mln won to 30 mln won, effective in August; only cash will count as margin and non-cash collateral (e.g. government bonds) will no longer be accepted. The FSC will tighten securities firms' ETF premium/discount management standard from 3% to 2%. Investor education requirements will increase from 2 to 3 hours, and the minimum trading unit for single-stock leveraged products will be temporarily raised from 1 to 20 units.