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[Alpha Biz=(Chicago) Reporter Kim Jisun] Low-priced Exchange Traded Fund (ETF) and Exchange Traded Securities (ETN) unit of less than 2,000 won will be lowered to 1 won. This is to solve the problems of low-cost ETF and ETN and to support the development of various products.
The Korea Exchange announced on May 5 that it will revise the securities market business regulations and listing regulations.
In the meantime, there have been problems with low-cost ETFs and ETNs, such as increased price spread and contract price volatility and increased speculative demand for coin stocks. The revision calls for lowering the unit price of low-priced ETFs and ETNs under KRW 2,000 from the current KRW 5 to KRW 1.
The listing review criteria will be revised to liberalize the listing of decimal scales. In the case of ETF, only water purification ratio products within twice the current status can be listed.
Currently, ETN can only list 0.5 magnification products within two times. Through the amendment, both ETF and ETN will be allowed to list decimal magnification products within two times.
The enforcement rules will take effect on December 18 after collecting opinions from market participants and developing exchange and member company systems.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
