South Korea Plans to Increase Single Stock Leveraged ETF Trading Threshold in September, with the Minimum Trading Unit Rising to 20 Shares

August 12th. The Korea Exchange has drafted a revised version of the "Guidelines for the Operation of the Securities Market" for Single Stock Leveraged ETFs, increasing the minimum trading unit from the current 1 share to 20 shares, and for ETNs from 1 security to 20 securities. The exchange is currently seeking market feedback.

It is reported that the South Korean financial regulatory authorities originally planned to implement this measure in November, but considering the rising speculation in single stock leveraged products, they need to cool down ahead of schedule. The exchange is pushing for implementation as early as next month. In addition to increasing the trading unit, the South Korean regulatory authorities will also enhance investor protection measures. New individual investors entering the market and participating in single stock leveraged product trading must complete at least 5 days of simulated trading, with 1 hour each day and a total of 5 hours, before trading.