South Korea gets tough after retail forex losses
SEOUL - Foreign exchange brokers were last week (July 17) hit with another round of retail foreign exchange regulations, this time from South Korea's Financial Supervisory Service (FSS) as it aims to curb hefty retail trading losses.
The new regulations come into effect on September 1, and cap leverage at 20 times, down from the current 50, while increasing the collateral requirements from 2% to 5% (see box). The FSS said the regulations are a response to a quadrupling of losses linked to margin
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