Authorities hold meeting and announce measures to reform regulations on CFD tradesMay 30, 2023

FSC Vice Chairman Kim So-young presided over a meeting with relevant institutions on May 26 to finalize a set of measures intended to strengthen regulations on trading of contracts for difference (CFDs). Financial authorities plan to (a) enhance transparency in the provision of relevant investment information, (b) close loopholes to prevent regulatory arbitrage, (c) require individual investors applying for the qualified professional investor status to go through an in-person verification process and (d) establish a new investment requirement for OTC derivatives transactions such as trading of CFDs. At the beginning of the meeting, Vice Chairman Kim said that the government and the relevant institutions plan to quickly and thoroughly carry out reforms to address the problems that have been pointed out in the wake of the recent unfair market transactions which have resulted in the erosion of public trust and market confidence. In this regard, Vice Chairman Kim said that the financial investment industry should actively take up the regulatory improvement measures and promote sound investment practices.