Financial Services Commission to Ease Regulations and Launch Single Stock Leverage ETFs
The Financial Services Commission (FSC) plans to ease regulations to allow the launch of single-stock leveraged ETFs and ETNs. This relaxation is expected to enable the listing of single-stock ETFs by the second quarter of 2023. Proposed amendments to the enforcement ordinance are underway to provide a legal foundation, and investor protection measures such as pre-investment education and heightened deposit requirements will be reinforced.
Additionally, the FSC aims to diversify the ETF market by developing a variety of derivative products. The expansion of covered call ETFs, alongside the introduction of active ETFs, is being pursued to enhance market competitiveness. These efforts focus on strengthening the international competitiveness of the domestic ETF market and preventing capital outflows.
These regulatory improvements aim to resolve asymmetries between domestic listed ETFs and foreign listed ETFs, creating a foundation for providing clear investment information to investors. This is expected to build investor trust and encourage market participation.
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