The government has decided to set individual investment limits for single-stock leverage products to manage investment scale. The specific restriction level has not yet been finalized, but an example is a plan to limit the proportion of single-stock leverage product investments to 20% or less among an individual's total investment amount.
To suppress excessive orders and short-term trading, transaction costs will also be increased. A plan is being considered to apply 'excess bid burden charges,' which impose costs when a certain level of orders are repeatedly submitted in the futures market, to single-stock leverage products as well. Entry requirements will also be strengthened by requiring a certain amount of time for simulated trading in addition to the current pre-education.
The government will also establish legal grounds so that financial authorities can flexibly adjust the leverage ratio in case of sudden market changes. Referring to Hong Kong's operation of the 'variable leverage' system, which adjusts the leverage ratio of products according to market conditions, the plan is to revise the system so that authorities can take market stabilization measures in emergency situations.
▶ Original source: https://n.news.naver.com/mnews/article/011/0004646643?sid=001
