[공매도 재가열] Financial authorities’adhering to the resumption principle’ despite under pressure from ants and politics

[서울=뉴스핌] Reporter Seong-Bong Lim = The abolition of short selling that started with individual investors As public opinion spreads to the political world, pressure on the financial authorities is increasing. Financial authorities are putting their weight on resuming short selling transactions as planned, but they are struggling to face headwinds.

On the 12th, the Financial Services Commission has ended the temporary ban on short selling on March 15th and has begun work to prepare follow-up measures.

Earlier, the Financial Services Commission sent a text message to reporters in the afternoon of the previous day, saying, “The temporary ban on short selling currently in effect is expected to end on March 15.” The financial authorities aimed to resume short selling in March. We plan to finish it,” he said. Although the voices of the abolition of short selling are rising from individual investors and political circles, it is interpreted that they have repeatedly expressed their position to resume short selling as planned.

In particular, it will not be easy to abolish the short sale as Eun Seong-soo, the head of the financial authorities, is putting weight on the resumption of short selling. At a press conference held on December 14 last year, Chairman Eun said, “(Short selling is an inclined playground, so individuals can sell short), and that if short selling is allowed to individual investors, the damage can be greater. There is,” he explained, “personally, a little closer to the latter.”

In addition, it is also a burden that if the Financial Services Commission simply accepts the arguments of individual investors, it could be engulfed in a controversy over the equity of other market participants such as institutions and foreign investors. In addition, there are concerns that the abolition of short selling could lead to criticism of reverse discrimination against foreign and institutional investors, and that their inflow to the stock market could be slow.

In the financial investment industry, the side effects caused by the abolition of short selling are difficult, so the Financial Services Commission is most likely looking at cards that force short selling to resume or extend the ban for the time being.

An official in the financial investment industry said, “From the perspective of the financial authorities, even if short selling is resumed, the calculation method is inevitable because criticism is inevitable even if it is not resumed,” he said. “Since the big hand is an institution and a foreign investor, it seems that they will decide to resume short selling.”

Finance Commissioner Eun Seong-soo holds a year-end press conference at the joint briefing room of the Seoul Government Complex in Jongno-gu, Seoul on the 14th to answer questions. [사진=금융위원회]

As the resumption of short selling is approaching two months or so, tensions are lingering inside the Financial Services Commission. As the stock market may fluctuate according to the policy direction of the Financial Services Commission, it is extremely uncomfortable regarding short selling.

An official from the Financial Services Commission explained, “There is nothing that can be explained right now and has not been decided regarding the resumption of short selling,” and “First of all, we are focusing on preparing related systems such as detecting illegal short selling.” Earlier, at a press conference, Chairman Eun also said, “I am not completely (affirmative) regarding the issue of short selling, but I will continue to listen to opinions.” Left.

Nevertheless, there are many voices from the industry that the Financial Services Commission should resume short selling transactions. This is because resuming short-selling transactions is effective as a way to solve the’bubble’ problem arising out of the short-term soaring that the KOSPI index exceeded the 3100 line.

In particular, if the Blue House is pushed to extend the ban on short selling, it will not be easy for the Financial Services Commission to endure it. The Ministry of Strategy and Finance took a step back when President Moon Jae-in made a statement with the intention that’individual investors should not be discouraged’ despite the reinforcement of requirements for large shareholders.

An official in the financial investment industry said, “If you do not abolish short selling transactions, the market should be resumed as the stock market is rising, so the impact on the market will be small.” “He said.

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