The Korea Exchange will reinforce sanctions against the lowest-graded liquidity providers (LPs) in the ELW market to enhance soundness in the ELW market.
Currently, LP business is suspended for one year for those LPs who get the lowest grade (F) three times consecutively.
However, effective from January 1, 2011, LPs receive the F grade for the first time will not be allowed to increase the number of ELWs in dealing for a month, and those who get F grade for consecutively twice will not be allowed to deal new contracts for a month.