Seoul: Average daily transactions in 16 single-stock leveraged exchange-traded funds (ETFs) fell below 1 trillion won (US$701 million) on Wednesday, data showed, after authorities took steps to curb the investment products blamed for recent market volatility.

According to Yonhap News Agency, the daily turnover of the 16 leveraged ETFs stood at 919.8 billion won, as reported by the Korea Exchange and Yonhap Infomax, the financial data unit of Yonhap News Agency. This marked the first instance since May 27, the date when the 16 leveraged ETFs were listed, that their daily turnover fell below 1 trillion won.

Last Friday, financial authorities took decisive action by raising the minimum cash deposit required for single-stock leveraged ETF investments. This move played a significant role in the sharp decline of daily transactions.

The daily turnover of the 16 leveraged ETFs had previously plunged to 3.1 trillion won last Friday, a steep drop from 12.4 trillion won recorded the previous day. Following the imposition of the new curbs, their average daily transactions continued to decline, reaching 1.3 trillion won on Monday and 1.2 trillion won on Tuesday, according to the data provided.