LG Securities to enter equity derivatives business

Korea’s LG Investment and Securities plans to enter the equity derivatives market as early as September, according to Seong-Ho Shin, assistant manager at the firm’s derivative product sales team in Seoul.

The move follows regulatory changes in South Korea earlier this month that has opened up the over-the-counter (OTC) derivatives market to the country’s securities firms. The firm plans to submit an application for a licence on August 5 and hopes to begin trading by as early as September this year, said Shin.

The seven-strong derivatives product sales team, headed by J.Y. Choung, will structure equity derivatives products such as equity swaps on single stocks and reverse equity swaps.