FSC Pushes for Early Implementation of Measures for Single-Stock Leverage ETFs

Financial authorities announced that they will implement the additional supplementary measures for 'single-stock leverage ETFs' released on the 29th as soon as possible. The Financial Services Commission (FSC) stated on the 30th that it would implement the additional measures for single-stock leveraged Exchange Traded Funds (ETFs), announced on the 29th, "at the earliest possible date." The FSC plans to amend the Capital Markets Act in conjunction with the Financial Supervisory Service to establish a legal basis for protecting investors and stabilizing the market during times of high volatility.

Setting individual investment limits will be carried out by having each securities company set limits on a per-account basis. This is intended to prevent individual assets from being overly concentrated in specific products.

The FSC has made mock trading mandatory to ensure investors clearly recognize the risks of single-stock leverage products before investing. By combining practical training with the existing theory-based prior education, investors are made to actually experience the risk of loss.