[South Korea to Tighten Trading Rules for Single Stock Leveraged Products Starting August 19, New Investors Must Complete at Least 5 Hours of Simulated Trading] BlockBeats News, August 12 — According to Yonhap News Agency, the South Korean Financial Services Commission approved amendments to relevant rules on August 12, further strengthening the management of price deviation rates for ETFs and ETNs starting August 19, and expanding simulated trading requirements to single stock leveraged products listed in South Korea and overseas, including inverse products. The new regulations tighten the price deviation rate management standards for all ETFs and ETNs by securities firms, reducing the threshold from 3% for domestic products and 6% for overseas products to 2% and 5%, respectively. For liquidity providers who intentionally, negligently, or repeatedly violate management obligations, the Korea Exchange plans to restrict their ability to engage in new liquidity supply operations. Starting August 19, individual retail investors investing for the first time in single stock leveraged products listed in South Korea or overseas must complete free simulated trading beforehand. Investors are required to conduct simulated trading for at least 5 trading days, with a minimum of 1 hour per day, totaling no less than 5 hours, to experience the negative compounding effects of leveraged products and the actual trading environment. The South Korean Financial Services Commission stated that it had previously raised the basic margin requirement for single stock leveraged products to 30 million Korean won in cash on July 31, which resulted in the trading volume of related products dropping to less than one-fifteenth of the previous day's volume. Regulatory authorities noted that although recent stock market volatility has eased, instability factors remain, and they will continue to monitor the market and implement follow-up measures. [Original Link]