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(LEAD) Seoul bourse to foster ETFs, ETNs for pension funds

All News 16:27 October 13, 2016

(ATTN: ADDS partnership with Taiwan's stock exchange in last 5 paras)

SEOUL, Oct. 13 (Yonhap) -- South Korea's stock market operator said Thursday it will try to attract more institutional traders, especially pension funds, to invest in exchange traded funds (ETFs) and equity traded notes (ETNs).

"For the continued development of the ETF and ETN markets, a long-term and stable demand infrastructure is needed," Korea Exchange (KRX) CEO Jeong Chan-woo said in a speech at an international forum here on the investment tool.

The bourse will provide support for institutional investors to use ETFs and ETNs as an effective tool for a strategic investment portfolio, he added.

He added the KRX is prioritizing protecting investors and enhancing transparency on related products.

The 7th Global ETF Conference opened with the theme of "New normal era and the fourth industrial revolution: ETF market's growth strategy."

The one-day forum was attended by hundreds of participants, including representatives from the Japanese, Taiwanese, Hong Kong, Indian and other foreign bourse operators, as well as overseas stock index firms.

Korea Exchange (KRX) CEO Jeong Chan-woo delivers an opening speech at the 7th Global ETF Conference in Seoul on Oct. 13, 2016, in this photo provided by the KRX. (Yonhap)

Meanwhile, the KRX chief held talks with his Taiwanese counterpart Shih Jun-ji on the sidelines of the event.

They discussed ways to promote cooperation between the KRX and the Taiwan Stock Exchange (TWSE), according to the Seoul bourse.

Last week, the two sides cross-listed their major ETFs on each others' stock markets.

They are considering the joint development of high-yield and IT-related indices and investment products.

The KRX said close cooperation with the TWSE is expected to serve as a chance to create a cornerstone for the further development of the Asian capital market as well as strengthen the global competitiveness of the two nations' stock markets.


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