by winston » Sat Feb 06, 2016 5:36 pm
Hong Kong securities regulator unveils rules permitting higher risk ETFs
Feb 5 Hong Kong's securities regulator has unveiled new guidelines that will pave the way for the launch of higher-risk exchange-traded funds (ETFs) in the financial centre.
The Securities and Futures Commission (SFC) said in a circular published on Friday that it will approve so-called inverse and leveraged funds in the financial centre provided they satisfy a number of investor protection requirements.
Leveraged and inverse ETFs typically use derivatives to deliver a multiple of the positive or negative daily return of the reference index.
The products have attracted criticism from regulators in the United States who worry that the use of derivatives create liquidity and counterparty risk.
Source: Reuters
It's all about "how much you made when you were right" & "how little you lost when you were wrong"