[South Korea's Increased Margin Requirements for Leveraged ETFs Take Effect, Single-Stock Leveraged Product Trading Volume Drops to One-Tenth of Peak Levels] BlockBeats News, August 3: Following South Korea's decision to raise margin requirements for single-stock leveraged ETF investors, trading activity in related products has significantly declined, with trading volume dropping to approximately one-tenth of previous peak levels. According to data from the Korea Exchange, the combined trading volume of 16 single-stock leveraged and inverse ETFs related to Samsung Electronics and SK Hynix in the KOSPI market amounted to 1.2388 trillion KRW over the two trading days following the implementation of the new measures, a 58.6% decrease compared to the 2.9907 trillion KRW recorded on July 31, the day the measures were implemented. Previously, South Korean regulators raised the minimum cash margin requirement for single-stock leveraged ETF investors from 10 million KRW to 30 million KRW. Compared to the trading volume of 12.4485 trillion KRW on the last trading day before the measures were implemented (July 30), the current trading scale of related products has dropped to about one-tenth. The cooling enthusiasm of retail investors is particularly evident. Data shows that retail investors' trading volume in single-stock leveraged and inverse products has fallen to 250.7 billion KRW, less than one-quarter of the 929.9 billion KRW recorded on July 31. Analysts indicate that the increased margin threshold has initially demonstrated its effectiveness in curbing speculative capital inflows, and the trading pattern of retail investors continuously buying leveraged products during declines in underlying stocks is undergoing a shift. [Original Link]