From January 4 Next Year, 1 Hour of Pre-Education Required for Trading Leverage ETF·ETN

Existing Investors Also Required to Maintain Basic Deposit

[Asia Economy Reporter Oh Ju-yeon] Starting January 4 next year, investors must complete a prerequisite education course to be able to buy and sell leveraged Exchange-Traded Funds (ETFs) and Exchange-Traded Notes (ETNs).

On the 2nd, the Korea Exchange announced that it will implement a basic deposit system from January 4 next year for existing investors in leveraged ETFs and ETNs.

Accordingly, individual investors (excluding professional investors) must deposit cash or substitute securities as a basic deposit according to the basic deposit application criteria set by the securities firm they trade with in order to submit purchase orders for leveraged ETFs and ETNs.

The basic deposit amount and application level will be applied differentially, considering the investor's investment purpose and experience, so investors should inquire with their securities firm for the specific basic deposit application criteria.

Additionally, from January 4 next year, individual investors wishing to trade leveraged ETFs and ETNs must complete a one-hour prerequisite education course conducted by the Korea Financial Investment Education Institute and register the education completion number with their securities firm.

For matters related to the leveraged ETF and ETN prerequisite education, please refer to the Korea Financial Investment Education Institute's website or contact their Customer Satisfaction Center.