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Bank of Korea Warns on Derivatives Tied to Korean Chipmakers

Source: Bloomberg

Derivatives & VolatilityMarket Technicals & FlowsRegulation & LegislationTechnology & Innovation

The Bank of Korea called for tighter monitoring of rapidly growing overseas derivatives linked to Korean chipmakers, warning they could amplify volatility in domestic markets. The central bank cited leveraged positions by hedge fund Situational Awareness as a contributor to recent swings, increasing regulatory and flow-related risk for Korean semiconductor equities.

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