Korean regulator cracks down on scalpers arbitraging warrants market

The Financial Services Commission (FSC) in South Korea has outlined its plans to prevent scalpers (professional retail traders) arbitraging the equity-linked warrants (ELW) market in the country but some dealers view the new measures as misguided and are concerned the market will shrink in size, so hitting their profits.

The new rules require a minimum deposit of 15 million won ($14,000) to be applied to an initial ELW transaction, which may prove too high for the many retail customers that curr