South Korean financial regulators sought to calm a volatile stock market by tightening cash deposit requirements for leveraged ETFs tied to Samsung Electronics and SK Hynix. Instead of cooling speculation, the move triggered a massive rotation of retail investors into Kosdaq small caps, which have surged 30% from their July 30 low. The Kosdaq index jumped 6.8% in a single trading day on Monday, triggering a Korea Exchange program trading halt for the third time this month. The SK Hynix leveraged ETF collapsed 45%, with regulators admitting the products had amplified market swings.
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