South Korea Accelerates ETF Rule Change to Dampen Market Volatility
New regulations for leveraged exchange-traded funds will be introduced by the end of July, moved up from August.
Business & Markets • 2 months ago
South Korea's Financial Services Commission (FSC) will accelerate the implementation of a new rule for leveraged exchange-traded funds (ETFs), aiming to curb market swings. The rule, requiring cash deposits for leveraged ETFs, will now be introduced by the end of July, a month earlier than its previously scheduled August debut.
The move by the FSC is intended to introduce more stability into the country's financial markets by reducing the speculative nature of leveraged ETFs, which can amplify both gains and losses. The accelerated timeline suggests a heightened concern within the commission regarding potential market volatility and the need for prompt regulatory intervention.