KB News Desk
South Korea’s financial authorities said Wednesday they are considering imposing a cap on the proportion of single-stock leveraged exchange-traded funds in individual investment portfolios as part of efforts to curb extreme stock market volatility.
Finance Minister Koo Yun-cheol and the heads of other financial authorities discussed the measure during an emergency meeting, with one option being to cap such ETFs at 20 percent of retail investors’ portfolios, although no decision has been made on the threshold.
“The participants shared the view that single-stock leveraged ETFs have contributed to stock market volatility, and vowed to come up with swift and bold countermeasures,” the finance ministry said. (Yonhap)
