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S.Korea's derivatives-linked securities issuance fall in Q3

SEOUL
2020-12-29 11:43

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SEOUL, Dec. 29 (Xinhua) -- South Korea's outstanding issuance of derivatives-linked securities fell in the third quarter due to higher redemption of existing securities, financial watchdog data showed Tuesday.

The outstanding issuance of equity-linked securities (ELS) and derivatives-linked securities (DLS) amounted to 100.9 trillion won (92.4 billion U.S. dollars) as of the end of September, down 6.7 trillion won (6.1 billion U.S. dollars), or 6.2 percent, from three months earlier, according to the Financial Supervisory Service.

Financial consumers increased redemption of the securities, which reached 22.1 trillion won (20.2 billion U.S. dollars) in the July-September quarter, on views that global stocks could decline after hitting new highs.

The third-quarter redemption was 8.8 trillion won (8.1 billion U.S. dollars) larger than the previous quarter.

The ELS sale in the third quarter reduced 7.5 percent compared to the previous quarter.

The ELS refers to hybrid debt securities, of which returns are determined by the performance of underlying assets, including stocks and stock indices.

The issuance of DLS, which tracks the performance of interest rates, currencies, raw materials and other products, advanced in double digits in the cited period.
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