Korea Volatility Spike Ebbs as Leveraged Trades Are Flushed Out

South Korea's stock-market volatility spike is ebbing after a historic selloff flushed out leveraged positions. Regulatory curbs sent trading in the riskiest products plunging, signaling the most extreme phase of the turmoil may be over. The development follows a period of intense market stress driven by leveraged trades unwinding under pressure from authorities.