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South Korea clamps down on retail derivatives instruments
FSC plans to restrict credit and natural phenomena derivatives sold to SME and retail investors
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South Korea's financial supervisor, the Financial Services Commission (FSC), plans to restrict the use of credit derivatives along with derivatives based on natural phenomena and economic events in the country in the coming weeks.
The move was described by and FSC spokesman as "precautionary" and was not the result of heavy losses suffered by Korean investors from derivatives contracts.
The FSC has targeted credit derivatives as they are "the usual building blocks that make up even more
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