Financial authorities are considering establishing basic deposits for listed index products (ETP), such as high-risk listed index funds (ETF) and listed index securities (ETN).

This is part of the investment protection measures that have resulted in the increased risk of high-risk ETF products such as crude oil futures leverage ETN.

According to the financial authorities, the Financial Services Commission is considering establishing a default customer deposit for ETP products that are difficult for investors to understand the product structure and are at high risk.

The targets for the basic deposit are high-risk ETP products, as well as crude oil futures leverage ETN, which has recently been an investment blast by individual investors.

The leveraged product, which is a borrowing investment, and the inverse product, which follows the index backwards, will likely be the priority.

Excluding products that investors can understand, such as ETFs that simply follow the stock index.

The Financial Services Commission is in consultation with the Korea Exchange regarding the details of the scope and amount of the basic deposit, and will be announced this week as soon as it is agreed.

There is a basic deposit of 10 million won for futures and options trading and 15 million won for equity-warranty securities (ELW).

It is known that the basic deposit is to raise the threshold of the investor somewhat to prevent excessive investors.

The Financial Services Commission is also considering making mandatory pre-training for high-risk ETP investors.