Brokers including Citigroup, JPMorgan and Goldman Sachs have raised swap financing costs and tightened new trades as SK Hynix, Samsung Electronics and TSMC face sharper volatility.
Global banks are tightening restrictions on hedge fund leveraged bets tied to Asian chipmakers including SK Hynix, Samsung Electronics and Taiwan Semiconductor Manufacturing Co., adding to signs of caution after the sector’s strong run-up this year. Bloomberg reported on June 12 that brokers including Citigroup, JPMorgan and Goldman Sachs have raised swap financing costs and tightened new trades. The shift came as chip shares and related leveraged products turned more volatile: Bitget data showed SK Hynix fell nearly 7% from its intraday high, while Samsung Electronics dropped 4.5%, and earlier MSX.COM data showed Hong Kong’s 2x long SK Hynix product reversed into negative territory after rising as much as 15% while the 2x long Samsung Electronics product trimmed gains to about 14% after climbing as high as 23%. Leveraged positions and swap-based financing can amplify market moves, making intraday reversals more acute when sentiment weakens and brokers reduce risk exposure.