Blue House, 'single-stock leveraged ETFs for Samsung Electronics and SK hynix' F4announces it will review them at a meeting
The Blue House 7 month 10 day announced that it would closely examine the market impact of single-stock leveraged ETFs for Samsung Electronics and SK hynix at the F4 meeting (Ministry of Economy and Finance, Financial Services Commission, Bank of Korea, and Financial Supervisory Service), and review areas requiring improvements from the perspective of investor protection. The ETFs became subject to a review of their operation after being introduced on 5 month 27 day.
The Blue House 7 month 10 day announced that it would closely examine market conditions regarding single-stock leveraged exchange-traded funds (ETFs) for Samsung Electronics and SK hynix. Kim Yong-beom, head of policy at the Blue House, said at Chunchugwan that it would consider improvements if necessary from the perspective of investor protection.
Kim Yong-beom said the leveraged ETFs would be reviewed at a market conditions review meeting (F4meeting) attended by the Ministry of Economy and Finance, the Financial Services Commission, the Bank of Korea, and the Financial Supervisory Service. He explained that, as the operating process involves a newly introduced system, it is necessary to examine its market impact.
The single-stock leveraged ETFs were introduced on 5 month 27 day. He mentioned that concerns had been raised about increased volatility during the approximately 1 and a half months of operation after their introduction.
Some have raised concerns that stock-price volatility has resulted in cases of investor losses. The Blue House said it would closely review this situation at the F4meeting and discuss supplementary measures if necessary.
No specific supplementary measures or timeline were disclosed in the announcement that day. The F4meeting is expected to decide the direction of future responses based on the results of the discussions.