$SKHYNIX $KORU South Korea is considering introducing the “emergency measures power” to reduce the leverage ratio of single-stock leveraged ETFs
The Korean Financial Services Commission (FSC) is working with the Financial Supervisory Service to advance revisions to the Capital Markets Act, with the proposed introduction of the “emergency measures power.” This would allow financial authorities, in cases of market emergency, to reduce the leverage ratio of single-stock leveraged ETF/ETN products from the current 2x to temporarily 1.5x or 1x without going through a vote by investors.
In a plenary session of the parliamentary affairs committee, FSC Chairman Lee Eon-won previously said that reducing the leverage ratio has a certain effect in alleviating market volatility.
#Korea KOSPI monthly drop of 22.2%, the largest since 2008
The Korean Financial Services Commission (FSC) is working with the Financial Supervisory Service to advance revisions to the Capital Markets Act, with the proposed introduction of the “emergency measures power.” This would allow financial authorities, in cases of market emergency, to reduce the leverage ratio of single-stock leveraged ETF/ETN products from the current 2x to temporarily 1.5x or 1x without going through a vote by investors.
In a plenary session of the parliamentary affairs committee, FSC Chairman Lee Eon-won previously said that reducing the leverage ratio has a certain effect in alleviating market volatility.
#Korea KOSPI monthly drop of 22.2%, the largest since 2008