F&Asset Appraisal Provides Data to Korea Exchange's 'Derivative-Linked Securities Integrated Information Platform'

[Asia Economy Reporter Minji Lee] FN Asset Evaluation announced on the 14th that it will provide related data to the Korea Exchange's 'Derivative-Linked Securities Integrated Information Platform.' The data provided includes types of derivative-linked securities, risk indicators, issuance information, and fair value.

Derivative-linked securities are products whose profit structures are determined in advance according to the value fluctuations of underlying assets. They can be categorized into exchange-listed products such as Exchange-Traded Notes (ETN) and Equity-Linked Warrants (ELW), and over-the-counter products such as Equity-Linked Securities (ELS), Derivative-Linked Securities (DLS), Equity-Linked Bonds (ELB), and Derivative-Linked Bonds (DLB).

The securities are classified into seven types, including principal-protected, limited profit cap, and extended profit cap types, while risk indicators are calculated based on maximum loss rate, CVaR (Conditional Value at Risk), and product maturity.

Among the risk indicators, the use of CVaR (Conditional Value at Risk) to calculate risk indicators for derivative-linked securities is the first in the industry, introduced through collaboration between FN Asset Evaluation and the Korea Exchange. CVaR is an indicator that measures the risk of derivative-linked securities products that have the possibility of principal loss.

Additionally, FN Asset Evaluation provides issuance information such as underlying assets, yield payment conditions, and characteristics for unlisted (over-the-counter) derivative-linked securities including ELS, DLS, ELB, and DLB, along with daily fair value. To use this service, users can either enter the platform address directly or access it through the information data system on the Korea Exchange website.

FN Asset Evaluation explained, "Based on extensive experience and know-how in derivative product evaluation, we provide seven types of securities and seven levels of risk indicators to facilitate investor access," adding, "Through the Korea Exchange's Derivative-Linked Securities Integrated Information Platform, we contribute to investors' rational decision-making."