Trading Value of Single-Stock Leverage ETFs Plummets Below 10 Trillion Won Ahead of New Measures

Ahead of the implementation of supplementary measures for single-stock leverage exchange-traded funds (ETFs), the trading value of 16 leverage products, including two inverse products, dropped sharply on the 27th.

According to the Korea Exchange, the combined trading value of these 16 products was tallied at 7.4464 trillion won for the day, plunging below the 10 trillion won mark.

This represents a decrease of more than 30 percent from the average trading value of 11 trillion won recorded by these products last week, and is down about 28 percent from the previous session's trading value of 10.2 trillion won.

Their share of the total ETF trading value (19.9 trillion won) for the day also fell below 40 percent to 37.2 percent.

The trading value share stood at 40 percent on the 23rd.

SOL SK hynix Futures Single Stock Inverse 2X and KODEX SK hynix Single Stock Leverage ranked first and second in trading value among all ETFs, maintaining their positions from the previous session.

However, the trading values for these products dropped to 2.61 trillion won and 2.6 trillion won, respectively, decreases of 1 trillion won and 500 billion won compared to the previous session.

The trading values for TIGER SK hynix Single Stock Leverage, KODEX Samsung Electronics Single Stock Leverage, and TIGER Samsung Electronics Single Stock Leverage were recorded at 930.7 billion won, 664.5 billion won, and 420.5 billion won, respectively.

On this day, SOL SK hynix Futures Single Stock Inverse 2X closed down 5.89 percent from the previous session at 11,255 won, but ranked first in net purchases by retail investors at 40.4 billion won.

Except for this product, no other single-stock leverage products made it to the top 10 list of net purchases by retail investors for the day.

In the main bourse on this day, Samsung Electronics closed up 1.80 percent and SK hynix rose 3.24 percent from the previous session.

Consequently, SK hynix leverage products posted gains of around 6 percent, while Samsung Electronics leverage ETFs closed higher by about 3 percent.

Financial authorities have moved up the implementation schedule of supplementary measures for single-stock leverage ETFs, which includes strengthening basic deposit requirements, from the initially planned timeframe in August to the 31st of this month.

Starting from the 31st, the basic deposit requirement will be raised from the current 10 million won to 30 million won, and substitute securities such as stocks, ETFs, and bonds will be excluded when calculating the basic deposit.

As a result, if an investor purchases and sells stocks or ETFs using 30 million won in cash on the same day (T-day), they will not be able to buy single-stock leverage products until the settlement date (T+2 days) unless additional cash is deposited.
 
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.