The FSS has pledged to strengthen monitoring on local issuers’ risk management of exotic products and conduct an on-site inspection in the second half of this year.
The Financial Supervisory Service (FSS) is seeking to increase the scrutiny of domestic securities firms in South Korea to monitor the higher levels of exotic risks in their trading books from selling structured products, mainly autocallables. Local players hedged KRW58.9 trillion (US$50.9 billion) worth of structured products as of the end of March, up over 20% compared to the amount logged at the end of March last year, according to the FSS. “We haven’t decided on which companies
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