South Korea tightens trading rules for single stock leveraged products starting from August 19th

On August 12th, the Financial Commission of South Korea approved revisions to strengthen the management of ETF and ETN price deviation rates from August 19th, and to extend simulated trading requirements to single stock leveraged products. The management standards for price deviation rate of securities companies have been tightened from 3% for domestic products in South Korea and 6% for overseas products to 2% and 5%, respectively. The South Korean exchange plans to restrict illegal liquidity providers from adding new business. Individual investors who invest in a single stock leveraged product for the first time must complete at least 5 hours of simulated trading. On July 31st, the Financial Commission of Korea raised the basic margin for single stock leveraged products to 30 million Korean won in cash.