The Korea Financial Investment Association discusses raising the minimum deposit requirement for individual stock leveraged ETFs and optimizing trading mechanisms
The Korea Financial Investment Association stated that the CEOs of 10 large asset management companies are discussing raising the minimum deposit requirements for individual stock leveraged ETFs and diversifying rebalancing trading hours. Participants believe it is necessary to increase the minimum deposit requirement from the current level of 10 million Korean won ($6714) and strengthen the market stabilizer role of liquidity providers. The Korea Financial Investment Association cited data from the Korea Capital Market Research Institute, stating that the estimated daily stock trading volume required for the rebalancing of related leveraged ETFs is approximately KRW 700 billion to KRW 2.1 trillion.