On July 31, according to Korean media, on the first day that South Korean financial regulators imposed restrictions on individual stock leveraged ETFs, trading volume in related products crashed to a quarter of the previous day's level. Data from the Korea Exchange (KRX) on individual stock leveraged ETF trading today showed that on the first day of the new rules, the total trading volume of 16 individual stock leveraged and inverse ETFs stood at 3.3071 trillion won. This represents a sharp decline of 75.3% from the previous day (12.4485 trillion won). Compared with the July average daily trading volume of 12.27 trillion won, the financial regulators' strong control measures have clearly taken immediate effect in curbing capital flows. Excluding inverse products, trading volume of the 14 major individual stock leveraged ETFs also fell 64.4%, from 6.9354 trillion won the previous day to 2.4686 trillion won.
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