South Korea's Individual Stock Leveraged ETFs See 75.3% Drop in Trading Volume on First Day
On July 31, the first day of the implementation of restrictions on individual stock leveraged ETFs by South Korea's financial regulatory authorities, the trading volume of related products plummeted to one-fourth of the previous day's total. Data from South Korean trading platforms show that the total trading volume of 16 leveraged and inverse ETFs for individual stocks was 33.071 trillion won, a decrease of 75.3% from the previous day's 124.485 trillion won. Compared to the average daily trading volume of 122.7 trillion won in July, the new regulations significantly suppressed capital flow. Excluding inverse products, the trading volume of 14 major individual stock leveraged ETFs fell by 64.4%, from the previous day's 69.354 trillion won to 24.686 trillion won.
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