Regulatory authorities are freezing new single stock leveraged product launches, raising investor entry requirements and strengthening oversight after explosive growth in semiconductor-linked trading raised concerns over market volatility and potential losses.
South Korea’s financial authorities are stepping in to rein in the rapid expansion of single stock leveraged ETFs and ETNs after a surge in demand pushed volatility concerns to the forefront. Following a market review meeting chaired by Deputy Prime Minister for Economic Affairs Koo Yun-cheol (pictured below) on 16 July, the Ministry of Economy and Finance, Financial Services Commission, Financial Supervisory Service and other related institutions announced a package of measures aimed at