TechFlow news, on July 14, according to The Korea Times, South Korean financial regulators will hold a high-level meeting on Thursday to discuss the risks and countermeasures of single-stock leveraged ETFs. The meeting is expected to be held under the framework of the South Korean government's macroeconomic and financial issues coordination mechanism, the "F4 Meeting," with officials from the Ministry of Economy and Finance, the Financial Services Commission, the Financial Supervisory Service, and the Bank of Korea attending together.
Recently, volatility in the South Korean stock market has continued to intensify, and single-stock leveraged ETFs are receiving increasing attention from regulators and market participants. All parties believe that these products have become an important factor driving drastic stock price fluctuations.
Informed officials stated that regulatory departments have been coordinating relevant plans internally in recent days, but the policy direction has not yet been finalized. Possible measures discussed in the market include increasing margin requirements, limiting daily price fluctuation ranges, and adjusting leverage multiples, among others. However, regulatory officials believe that the above measures may only serve to temporarily alleviate the situation, and it is difficult to fundamentally solve the structural causes of market volatility. (Jin10)
