Hana Securities has been suspended from issuing new Exchange Traded Notes (ETNs) until the end of this month. This is the first time such a measure has been taken in about three years since 2022.
According to the financial investment industry on the 9th, Hana Securities will be prohibited from issuing new ETNs for two months, from December last year until the end of this month. This action follows the company receiving an 'F' grade, a failing rating, in the ETN Liquidity Provider (LP) performance evaluation conducted in November last year.
It is known that Hana Securities failed to adequately provide quotes for its products in November last year. Since ETNs require the issuing securities company to also perform LP duties, sanctions are imposed on the issuance side based on the LP evaluation.
This is the first time in about three years since Daishin Securities in March 2022 that a suspension has been imposed due to failing the LP evaluation grade. However, Hana Securities currently has no plans to launch additional products, so this measure is not expected to have a significant impact as a sanction.
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