Movement Alert|Direxion Daily Semiconductor Bear 3X Shares Rises 10.94% in Regular Trading, Korean Regulatory Crackdown on Leveraged ETFs Triggers Global Chip Selloff

Market Focus
Jul 17

On July 17, Direxion Daily Semiconductor Bear 3X Shares rose 10.94% in regular trading, trading at $59.24/share, with turnover of $1.25 billion.

On the news front, Korea's Financial Services Commission officially announced tightened regulations on single-stock leveraged ETFs, raising the minimum margin requirement from 10 million to 30 million Korean won (cash only) while banning new product listings. Following the announcement, SK Hynix plunged over 11% and Samsung Electronics fell more than 8%, with the selloff rapidly spreading to European and US markets. The Philadelphia Semiconductor Index has now declined over 22% from its mid-June peak, formally entering a technical bear market.

As a 3x inverse leveraged ETF tracking the 30 largest US-listed semiconductor companies, SOXS amplified gains through its reverse leverage mechanism amid broad-based sector weakness, reflecting intensified risk aversion and profit-taking pressure following an unprecedented 78% year-to-date rally in the semiconductor sector.

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