Korea Exchange (KRX) plans to introduce delisting requirements for single-stock leveraged and inverse exchange-traded funds (ETFs) and exchange-traded notes (ETNs).
The exchange on the 8th gave notice of a revision to the Enforcement Detailed Rules of the KOSPI Market Listing Regulations that would establish delisting requirements for single-stock leveraged and inverse ETFs and ETNs.
The key point is that if the underlying issue for a single-stock leveraged or inverse ETF or ETN meets for three months the conditions such as ▲ an average market capitalization share of less than 5 out of 100 in the KOSPI market ▲ an average transaction value share of less than 25 out of 1,000 in the KOSPI market, it will be delisted.
If the underlying asset is an on-exchange derivative, it will be delisted when its average transaction value share over the previous three months is less than 5 out of 1,000 in the relevant derivatives market.
It also includes an obligation to report without delay if the underlying asset falls under these delisting requirements.
The exchange will accept comments on the proposed revision until the 15th.
Meanwhile, single-stock leveraged and inverse ETFs and ETNs are also subject to the existing ETF and ETN delisting requirements.