▲ Korea Exchange
Data showed that fee revenue collected by the Korea Exchange and securities firms exceeded 100 billion won for about two months following the launch of single-stock leverage ETFs until the implementation of complementary measures.
According to statistics submitted by the Financial Supervisory Service and the Korea Exchange to the office of Representative Park Sung-hoon of the People Power Party, a member of the National Assembly's National Policy Committee, related fee revenue for the exchange and securities firms totaled approximately 117.26 billion won from May 27, when single-stock leverage and inverse ETFs for Samsung Electronics and SK hynix were launched, through the end of July.
The compilation covers a total of 16 related products.
As criticisms mounted that single-stock leverage was maximizing stock market volatility, financial authorities strengthened investment requirements starting on July 31 by raising the basic deposit requirement to 30 million won in cash only.
During this period, the exchange's trading fees and clearing and settlement fees totaled 27.911 billion won.
Over the 45 trading days, average daily fee revenue of approximately 620 million won was generated.
Trading fees accounted for the majority at 24.139 billion won, while clearing and settlement fees stood at 3.771 billion won.
On days when trading was heavily concentrated, daily revenue exceeded 1 billion won.
For instance, fee revenue of 1.051 billion won was generated on June 24.
Fee revenue of 1.011 billion won was also earned on July 14.
Brokerage fee revenue of securities firms from Samsung Electronics and SK hynix single-stock leverage and inverse ETFs totaled 89.35 billion won.
The Financial Supervisory Service added that actual related fee revenue was smaller than the trading volume due to promotional events by some securities firms temporarily waiving online brokerage fees.
Previously, FSS Governor Lee Chan-jin stated during a press conference in June, "The extreme turnover rate of these products is resulting in only securities firms fattening their bellies," adding, "I am personally deeply concerned about a dynamic where players gain no real benefits while only the systems managing and operating them profit."
Financial authorities announced complementary measures regarding single-stock leverage last month.
They decided to raise investment barriers by strengthening the basic deposit requirement and set individual investment limits at around 20 percent of total investment amounts.
The measures also included pre-trade education and strengthened obligations for securities firms to manage tracking error rates.
(Photo: Yonhap News)
※
Copying, redistribution, and unauthorized use in AI training are strictly prohibited.