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Currency traders, South Korea, Thursday, Thursday, February 24, 2022, Thursday, Thursday, Thursday, Thursday, Thursday, Keb Hana Bank’s headquarters monitoring the foreign exchange room.
AHN Young-Joon | Trip
On Monday, South Korea raised the longest short sale ban on the country after the ramping measures against illegal operations.
Placed in a short-selling ban November 2023 After a number of short sales violations involving many global investment banks.
On Monday, according to the country’s financial services commission, the approximate 2700 seconds listed in the Korean exchange will be completely reconstructed. Previously, Benchmark was allowed to only 350 shares in Kospi and small lid Kosdunda.
Unlike the previous short prohibitions of the country, the last ban was managed mainly due to regulatory reasons and prepared for the protection of retail investors, he said.
There were previous short sales bans in Korea:
- October 2008 – During the global financial crisis in May 2009
- August 2011 – November 2011 during the eurozone debt crisis
- March 2020 – May 2021 During Covid Pandemia
In addition, the woman, which has previously been able to stabilize its financial markets, said that those who targeted systematic reforms to improve the 2023 size, retail investor accessibility, he said.
Penalties for short sale have intensified significantly, presented a system with Korean exchange Detect the bare short sale. Naked short sales include shortening stocks without debt, and it is illegal in South Korea.
Penalties for illegal benefits were also raised and executive measures were squeezed. A profit of 5 billion Koreans ($ 3.4 million) or more, the period of five years in prison may result in life imprisonment.
Politically controversial issue?
Short sales have become a controversial issue in South Korea, this is a strong pool of strong investors, which tells you to lower the experience stock values.
“Retail investors are more than 50% of market trading, creating a major political issue for the Korean government,” said KB Securities Managing Director Peter.
Foreign investors were arrested in the crossroads of a short sales ban, and some global investment banks were punished. Country’s financial control services in February Penalties are applied in several major investment banks Like JPMorgan and Morgan Stanley because you break short-term rules.
The ban is expected to increase the market of South Korea.
Return to short sale should bring positive impacts to the general market and investors, encourage additional liquidity to the market to further participate in the hedge funds and increase market transparency.
“The price is put in the cost of wear. This is another reason for the restoration of the restoration of the restoration of short sales,” said Macquarie analysts.
Goldman Sachs also provides for higher trading activities from foreign investors with about 70% of foreign investors with about 70% of foreign investors.
“Short-selling activities, after the restoration, must improve the efficiency of the market, which offers potential alpha opportunities,” Investment Bank said.
