Monetary Companies Fee Chairman Eun Sung-soo remarked on March 3 that the federal government’s resolution to carry its momentary quick promoting ban on Could 3 needed to be made for a minimal affect on the inventory market.
“We’re making efforts in varied methods, together with thorough market monitoring and the introduction of fines and legal punishments, and each unlawful quick promoting shall be detected and punished,” he mentioned, including, “To this finish, bare quick promoting inspection shall be carried out each month, as a substitute of each six months, and we’re engaged on new monitoring strategies in cooperation with the Korea Alternate.”
He additionally mentioned that quick promoting by Mini KOSPI 200 market makers, that’s, securities firms shall be banned and a brand new uptick rule shall be applied so that every market maker can’t submit an asking value equal to or decrease than the instantly earlier value and a inventory value decline attributable to quick promoting may be prevented.
Additionally, the fee is planning to permit quick promoting by particular person traders. It’s going to put together a inventory lending system of two trillion gained to a few trillion gained by Could 3 to this finish. The chairman additionally remarked that the revised Monetary Funding Companies and Capital Markets Act for such fines and punishments will turn into efficient on April 6 and the federal government’s resolution mirrored this schedule as effectively.