​Regulation Of Korean ELS/DLS To Drive Smart Beta, Hybrid ETFs

Increased scrutiny from the South Korean Financial Services Commission in equity-linked and derivatives-linked securities will result in smart beta and hybrid exchange-traded funds attracting significant capital in 2016. ELS and DLS issuance is likely to be flat in 2016 after the regulator issued a notice last year following a number of products breaching their knock-in barriers, due largely to the decline in the HSCEI.