Financial Services Commission orders brokerages to devise their own measures for single-stock leveraged ETFs
After single-stock leveraged ETFs were identified as a major cause of stock-market volatility, the Financial Services Commission asked brokerages to submit 7month 13day plans for voluntary measures to protect investors. This is a follow-up to a meeting of brokerage chief executives.
The Financial Services Commission asked brokerages to submit investor-protection measures related to single-stock leveraged ETFs by 7month 13day. The reason cited was that these ETFs had been identified as a factor behind the extreme volatility in the stock market recently.
The Financial Services Commission asked the Korea Financial Investment Association on 7month 10day to have each brokerage prepare and submit a plan for voluntary measures to protect investors. The submission deadline is 2026year 7month 13day.
This notice is a follow-up to a meeting of brokerage chief executives chaired by Financial Services Commission Vice Chairman Kwon Dae-young. The meeting was held on 7month 9day.
At the meeting, Vice Chairman Kwon Dae-young discussed issues related to single-stock leveraged ETFs and venture capital. The Financial Services Commission was reported to have raised the need for market stability and investor protection at the meeting.
The financial investment industry understands this request as a procedure under which each securities firm documents and submits specific measures it has prepared independently, including sales restrictions, enhanced investor explanations, and risk disclosures.
The Financial Services Commission said it may decide whether to issue additional guidelines or take further measures based on the plans submitted.
Sources: 연합인포맥스
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