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Regulator warns against overseas derivatives investment

Finance 12:00 February 11, 2019

SEOUL, Feb. 11 (Yonhap) -- South Korea's financial regulator on Monday warned retail investors against the trading of overseas derivatives products, saying local investors have incurred losses from such trading regardless of market situation.

The total value of foreign derivatives trading came to US$45.1 million in 2017, compared with $48 million in 2016 and $39.2 million in 2015. In the first quarter of last year, the number of overseas derivatives trading stood at $15.2 million, according to the Financial Services Commission (FSC).

Regulator warns against overseas derivatives investment - 1

In the first quarter of last year, a total of 43,612 people traded derivatives and 93.6 percent of them were retail investors, the FSC said.

The annual turnover of South Koreans' foreign derivatives trading stood at $1.8 trillion in 2017, compared with $1.6 trillion in 2016 and $1.5 trillion in 2015, according to the FSC.

Local investors lost $74 million in 2017 and $120 million in 2016 from overseas derivatives trading, the FSC said.

The FSC said it will order local brokerages to improve guidelines for investors who trade overseas derivative products.

kdh@yna.co.kr
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