Controversy over single-stock leveraged ETFs intensifies as calls for delisting grow
Political circles are calling for the delisting of single-stock leveraged ETFs, while financial authorities are considering requiring additional completion of preliminary education and raising deposit requirements. The industry counters that it is difficult to attribute the increase in volatility solely to leveraged ETFs and raises concerns that the adverse effects of past derivatives regulations could recur.
Calls from political circles to delist single-stock leveraged exchange-traded funds (ETFs) are growing louder. This issue could directly affect investor access and the trading environment.
According to the financial investment industry, some political circles have called for delisting, while financial authorities are considering requiring additional completion of preliminary education and raising deposit requirements. Specific measures have not yet been finalized.
The industry explains that there have recently been cases of sharp rises and falls in individual stocks such as Micron and Kioxia. However, critics argue that it is difficult to conclude that leveraged ETFs alone are responsible for the increase in volatility.
An industry analysis said it had confirmed the daily fluctuations of some stocks this year 1 month 2from this month 9 through . Based on the analysis results, some have pointed to the complexity of the causes.
The regulatory measures under review include strengthening preliminary education and raising the required deposit, in addition to delisting requirements. Market participants are watching whether these measures will affect trading costs and barriers to entry.
Some officials pointed out that the side effects of past regulations on the derivatives market must not be repeated. There are concerns that the market structure and liquidity could change depending on the direction of regulation.
The authorities are continuing related discussions, and the specific measures and implementation timing will need to be confirmed through further announcements. Investors need to check relevant notices and changes to the system.
Sources: 연합인포맥스
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