South Korea raises margin requirement for leveraged products, retail investors reduce holdings of leveraged ETFs and switch to spot buying

According to data from the Korean Securities Depository, the financial regulatory authorities in South Korea have raised the basic margin for domestic and foreign single stock leveraged products from KRW 10 million to KRW 30 million in cash starting from July 31st. Tesla's double leverage product TSLL saw a net sale of 7.11 million US dollars on August 4th, while Tesla's spot net purchase reached 42.3 million US dollars during the same period. Micron Technology's 2-fold leveraged products changed from a net buy of $10.81 million on the 3rd to a net sell of $15.98 million on the 4th, with Micron Technology's spot net inflow of $148 million during the same period; SanDisk's 2x leveraged products changed from a net buy of $17.74 million to a net sell of $33.74 million, with a net spot inflow of $145 million during the same period.