South Korea Waives Stock-Margin Collateral Rule for Three Months
Photo: TokenPost
South Korea will temporarily suspend brokerages’ requirement to maintain a 140% collateral ratio on margin-financed stock trades after a selloff triggered the KOSPI’s 11th circuit breaker of the year. The three-month waiver is intended to limit forced liquidations when falling prices prompt collateral calls. The measure takes effect Nov. 9. The KOSPI, South Korea’s benchmark stock index, ended the session at 5,059.65, down 324.15 points, or 6.02%. It fell as much as 8.55% intraday. When the circuit breaker was triggered, the index stood at 4,924.61, down 8.52% from the previous close, and trading was halted for 20 minutes.
Source: TokenPost
