With regulations on single-stock leveraged products for Samsung Electronics(005930) and SK hynix(000660) three days away from taking effect, the financial authorities held a meeting with the financial investment industry and asked for cooperation on supplementary measures.
On the 28th, the Financial Services Commission held a "financial investment industry meeting on directions to supplement single-stock leveraged products" at the main conference hall of the Korea Financial Investment Association in Yeongdeungpo-gu, Seoul.
At the meeting, the financial authorities requested swift implementation of the supplementary plan for single-stock leveraged products released on the 16th and active cooperation from the industry.
Earlier, the financial authorities released a supplementary plan that raises the basic deposit for single-stock leveraged products from 10 million won to 30 million won and expands the minimum trading unit from 1 share to 20 shares. In particular, to strengthen investor protection, the increase in the basic deposit will take effect on the 31st.
The financial authorities asked for industry cooperation not only for investor protection but also from a market operation perspective. They asked asset management companies to stagger the timing of rebalancing for single-stock leveraged products to ease the concentration of trades right before the market close. They also emphasized that securities firms serving as liquidity providers (LPs) should contribute to market stability by supplying appropriate liquidity.
Lee Eog-weon, chair of the Financial Services Commission, said, "As the ultimate responsible authority for financial markets, the Financial Services Commission will move quickly to implement the supplementary plan for single-stock leveraged products, with market stability and investor protection as the top priorities," adding, "As core players supporting the capital market, the industry should act with a strong sense of responsibility and work to restore market trust."