S.Korea considers FX margin trading curbs -official

July 8, 2009

A South Korean bank clerk shows new 5,000-won ($4.93) bank notes at the headquarters of Woori Bank in Seoul    By Kim Yeon-hee and Lee Chang-ho
   SEOUL, July 8 (Reuters) – South Korea is considering imposing limits on currency margin trading to curb speculation, a senior official of the country’s financial authority said on Wednesday, a move that may dent brokerage houses’ efforts to expand into forex services.
   Margin trading allows investors to make leveraged bets on currencies and has grown increasingly popular in recent years among retail investors in South Korea and Japan.
   “We are considering a number of measures and will make an announcement soon,” the official told Reuters, asking not to be identified until a decision was made.
   Steps to be taken could include raising the amount of collateral investors must park with margin brokers from the current 2 percent.
   Margin trades involve leverage of around 100 times or more than the amount of collateral, leaving the forex market more speculative and exposed to deep swings.
   Currently, about 20 currencies are traded via margin trading in South Korea, with the yen <JPY=> and euro <EUR=> the most popular.
   In April, the Nikkei business daily reported that Japan’s Financial Services Agency was looking at limiting the maximum amount of leverage investors can employ for currency margin trading.
   Officials of futures trading firms are concerned about the upcoming curbs, saying they would limit their trading activity.
   But Chung Hae-geun, an executive managing director of Daewoo Securities, said the possible rules would bring forex margin trading into the regulatory boundary and help protect investors.
   South Korean brokerage companies, including Daewoo Securities <006800.KS> and Mirae Asset Securities <037620.KS>, have applied for licenses to offer forex margin and other futures trading, under a new capital markets law introduced in February.
   The won currency <KRW=> trimmed losses to close domestic trade at 1,273.50 against the dollar.
 (Additional reporting by Lee Soo-jung and Shin Jieun; Editing by Chris Lewis)
  ((yeonhee.kim@thomsonreuters.com; +82 2 3704 5646; Reuters Messaging: yeonhee.kim.reuters.com@reuters.net))
  ((If you have a query or comment on this story, send an email to newsfeedback.asia@thomsonreuters.com))
Keywords: KOREA FOREX/MEASURES 
   
Wednesday, 08 July 2009 08:29:26RTRS [nSEO103521] {C}ENDS

1,997 comments

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

Usually I don’t read article on blogs, but I would like to say that this write-up very pressured me to take a look at and do so! Your writing style has been surprised me. Thank you, very nice post.

If you’re still on the fence: grab your favorite earphones, head down to a Best Buy and ask to plug them into a Zune then an iPod and see which one sounds better to you, and which interface makes you smile more. Then you’ll know which is right for you.

I have learn some excellent stuff here. Definitely price bookmarking for revisiting. I wonder how a lot attempt you set to make this kind of fantastic informative site.

magnificent points altogether, you simply received a new reader. What might you recommend about your publish that you made a few days ago? Any certain?

You’ve got noted terribly attention-grabbing points ! ps very good net website here.

I am curious to find out what blog system you have been working with? I’m experiencing some small security problems with my latest blog and I’d like to find something more safeguarded. Do you have any solutions?|

Very good post. I’m experiencing a few of these issues as well..

Thank you for every other fantastic post. The place else may anybody get that kind of information in such a perfect manner of writing? I’ve a presentation next week, and I’m on the search for such info.|

I really like what you guys are up too. This kind of clever work and coverage! Keep up the excellent works guys I’ve included you guys to blogroll.|

Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that automatically tweet my newest twitter updates. I’ve been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this. Please let me know if you run into anything. I truly enjoy reading your blog and I look forward to your new updates.|

Pretty! This was an extremely wonderful post. Many thanks for providing this info.

It is hard to locate knowledgeable individuals on this subject even so you sound like you know what you are talking about! Thanks

This is really interesting, You’re a very skilled blogger. I have joined your feed and look forward to seeking far more of your exceptional post. Also, I’ve shared your website in my social networks!

Excellent post. I used to be checking constantly this blog and I am impressed! Extremely useful info particularly the closing part :) I maintain such information much. I used to be looking for this particular information for a long time. Thank you and good luck. |

Remarkable! Its genuinely awesome article, I have got much clear idea about from this paragraph.|

I very pleased to find this internet site on bing, just what I was searching for : D besides saved to favorites .

I think this is one of the such a lot vital info for me. And i’m glad reading your article. But should statement on few normal issues, The web site style is ideal, the articles is really nice : D. Just right job, cheers|

Hey very interesting blog!|

This is a good tip especially to those new to the blogosphere. Brief but very precise information… Thank you for sharing this one. A must read post!|

Wow, that’s what I was seeking for, what a data! existing here at this web site, thanks admin of this web page.|

Great blog you have here.. It’s hard to find quality writing like yours nowadays. I honestly appreciate individuals like you! Take care!!|

If some one wishes expert view regarding blogging after that i recommend him/her to pay a visit this web site, Keep up the fastidious work.|

Wow, that’s what I was searching for, what a stuff! existing here at this website, thanks admin of this site.|

This is the right site for anybody who wishes to find out about this topic. You realize a whole lot its almost hard to argue with you (not that I actually will need to…HaHa). You definitely put a brand new spin on a topic that’s been written about for many years. Excellent stuff, just great!|

I know this really is very boring and you’re skipping to succeeding comment, nonetheless I just necessary to throw you a big thanks you cleared up some items for me!

Why people still use to read news papers when in this technological globe the whole thing is accessible on net?|

It’s amazing designed for me to have a web page, which is good in favor of my know-how. thanks admin|

I will immediately seize your rss feed as I can not find your e-mail subscription hyperlink or e-newsletter service. Do you’ve any? Kindly let me know so that I may just subscribe. Thanks.

I savour, cause I found exactly what I was looking for. You’ve ended my four day lengthy hunt! God Bless you man. Have a nice day. Bye|

Just wish to say your article is as astounding. The clearness in your post is simply spectacular and i could assume you are an expert on this subject. Well with your permission allow me to grab your feed to keep up to date with forthcoming post. Thanks a million and please keep up the gratifying work.|

It’s enormous that you are getting thoughts from this paragraph as well as from our argument made at this time.|

Hello, i think that i saw you visited my web site so i came to “return the favor”.I am trying to find things to enhance my web site!I suppose its ok to use a few of your ideas!!|

It’s great that you are getting ideas from this paragraph as well as from our dialogue made here.|

I’m not sure where you are getting your information, but great topic. I needs to spend some time learning much more or understanding more. Thanks for fantastic information I was looking for this information for my mission.|

There’s certainly a great deal to know about this topic. I really like all of the points you’ve made.|

Hey! I just wanted to ask if you ever have any issues with hackers? My last blog (wordpress) was hacked and I ended up losing a few months of hard work due to no data backup. Do you have any methods to protect against hackers?|

Hello to all, because I am really keen of reading this weblog’s post to be updated daily. It carries pleasant information.|

Good post. I definitely appreciate this website. Thanks!

Great blog right here! Additionally your website lots up very fast! What host are you using? Can I am getting your associate link to your host? I desire my web site loaded up as quickly as yours lol|

Posted by search engine optimization | Report as abusive

I was able to find good info from your articles.|

I think the admin of this website is in fact working hard in support of his site, as here every material is quality based stuff.|

Right here is the perfect web site for anybody who really wants to understand this topic. You know so much its almost hard to argue with you (not that I actually will need to…HaHa). You certainly put a fresh spin on a subject which has been discussed for decades. Wonderful stuff, just great!

What a stuff of un-ambiguity and preserveness of valuable familiarity on the topic of unpredicted emotions.|

Great beat ! I would like to apprentice while you amend your site, how could i subscribe for a blog site? The account aided me a acceptable deal. I had been a little bit acquainted of this your broadcast provided bright clear idea

Pretty nice post. I just stumbled upon your blog and wished to say that I’ve really enjoyed surfing around your blog posts. In any case I’ll be subscribing to your rss feed and I hope you write again soon!|

This is the right web site for anyone who really wants to find out about this topic. You understand a whole lot its almost tough to argue with you (not that I personally will need to…HaHa). You definitely put a brand new spin on a subject that’s been written about for ages. Wonderful stuff, just great!