South Korea will ban short selling of stocks from November 6th until June 2024. The Financial Services Commission of Korea (FSC) announced on the 5th that it aims to “proactively” improve rules and systems.
In a statement, the FSC explained that until June 30 next year, borrowed stocks will be prohibited from trading in the constituent stocks of the Korea 200 Stock Index and the KOSDAQ150 Index.
In May 2021, South Korea lifted the ban on short selling of stocks introduced during the coronavirus pandemic for both index constituents.
The FSC needs to proactively respond to rising market uncertainty, and there are concerns that routine naked short selling (short selling without borrowing the underlying stock) will undermine fair price formation. pointed out. It said it had discovered an example by a global bank and found a situation where naked short selling was possible.
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news-rsf-original-reference paywall">Original title:South Korea to Ban Short-Selling of Stocks Until June Next Year(excerpt)
2023-11-05 09:23:51
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