From now on, public offering funds can be traded as easily as stocks and exchange-traded funds (ETFs).
On the 13th, the Financial Services Commission announced that it has newly designated 34 listing trading services for general public offering funds applied for by asset management companies, securities firms, and trust companies as innovative financial services.
This service allows public offering funds to be listed on the exchange, reducing various costs such as sales fees and commissions, while providing investors with a convenient way to trade them like stocks and ETFs. By creating a 'listed class (group)' for high-quality over-the-counter public offering funds currently in operation and listing them on the exchange's securities market, investors can directly trade public offering funds. This is a follow-up service to the policy announced in January this year called the 'Plan to Enhance the Competitiveness of Public Offering Funds.'
The Financial Services Commission granted special exceptions so that the listed class can operate like ETFs in terms of liquidity provision by APs (Authorized Participants) and LPs (Liquidity Providers), redemption procedures, foreign investment attraction, and individual investor notifications, and separately established related exchange listing and operational regulations to enable this operation.
The Financial Services Commission expressed expectations, saying, "The accessibility and convenience of trading, which have been deterrents to investing in public offering funds, are expected to improve," and "individual investors will be able to utilize the expertise of professional investment personnel at more reasonable costs."
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