SEOUL, July 30 (Yonhap) — South Korea’s financial regulator said Thursday it plans to carry out additional measures to cool the single-stock leveraged exchange-traded funds (ETFs) “as early as possible.”
The announcement by the Financial Services Commission (FSC) came after an emergency market inspection meeting it held with other related agencies Wednesday night, following concerns the investment product has amplified wild market swings and triggered sharp sell-offs and retail losses.
The FSC plans to prepare legal grounds to activate market stabilization measures by revising the Capital Markets Act with the Financial Supervisory Service (FSS).
The FSC added it will also have brokerages set limits on the maximum amount of investment into single-stock leveraged ETFs, in order to prevent investors from taking excessive risks by investing a majority of their assets into such…
