Korea ELW crackdown leaves traders unhedged

Justin Lee
14 May 2012

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The latest crackdown by the Financial Services Commission on the Korean equity-linked warrant (ELW) market has had the knock-on effect of sharply reducing hedging options for issuers in their equity-linked securities (ELS) products, according to market participants.

The financial regulator has implemented a series of measures in the last 12 months to tighten control over the ELW market, including mandatory education of retail investors, a minimum deposit of 15 million won (US$13,000) and, on

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