South Korean authorities are reportedly holding mock trading courses to cool investor fervor over risky exchange-traded funds that have caused volatility in the market, according to Bloomberg.
Trading volume in leveraged ETFs for Samsung Electronics and SK Hynix has plummeted to 4 percent of their peak in June, and may see its first monthly outflow in August.
Abating the demand for such products require a series of tightening regulations, including a mandatory five-day demo trading course that requires investors to download a Windows-only program to their personal computers, and spend at least an hour a day learning to use virtual funds for leveraged trading and understanding the associated risks.
Korea Exchange did not disclose the number of people who downloaded or tried the program.
ETFs linked to Samsung Electronics and SK Hynix have seen a combined outflow of US$1 billion (HK$7.8 billion) so far in August, marking their first monthly outflow, according to Bloomberg, as analysts add that the outflow is likely to continue in the short term.
