[Background]

Currently, there is no sufficient mechanism to restrict the incentive for securities firms to excessively issue derivative-linked bonds (DLBs). Therefore, it is necessary to improve the method for calculating the leverage ratio to curb the incentive for over-issuance and protect financial consumers.

[Main Points]

When calculating a securities firm's leverage ratio (Total Assets/Equity Capital), the outstanding balance of derivative-linked bonds (DLBs) will be added to Total Assets at the same level as non-complex, domestic-index derivative-linked securities.