Park Yong-jin promotes computerized short sale of securities companies… “I’ll catch it unfairly”

[이데일리 김미경 기자] On the 24th, Democratic Party lawmaker Park Yong-jin said, “I will eradicate illegal activities by making computerization of short selling of securities companies mandatory and strengthening penalties.”

The revised bill of the Capital Markets and Financial Investment Business Act (Capital Markets Act) with the aim of making it mandatory for securities companies to establish a pre-monitoring system on their own to ensure that no people are disadvantaged by institutional loopholes and slanted playgrounds in the stock market. It is a policy to initiate.

Rep. Park held a press conference at the National Assembly this morning and said, “We intend to supplement the current situation by introducing a system to block pre-debt short selling.”

Democratic Party lawmaker Park Yong-jin is holding a press conference on the 24th at the Communication Hall of the National Assembly in Yeouido, Seoul.

He said, “Before selling, the securities company is equipped with a computer to check whether or not the stock borrowed through the electronic system, and then have its own electronic system that can place a sell order, while the financial authorities put an obligation to manage and supervise it.” “The possibility of forgery or falsification of evidence of illegal short selling is blocked in advance, and there is also a provision to punish intermediaries when violating this.”

Regarding the Financial Services Commission, “The investigation of illegal short selling by market makers announced by the Financial Services Commission in December of last year was the first supervision since the introduction of the related system in 2016.” As such, the illegal activities of market makers had to be dealt with more firmly. It is actually concealing and reducing the illegal short selling behavior of market makers,” he criticized.

In addition, the Financial Supervisory Service raised the suspicion of passing through the Financial Supervisory Service and urged the resumption of short selling, △ severe punishment for illegal short selling by miracled market makers, △ re-investigation of illegal short selling by the Financial Supervisory Service, and △ inclusion of illegal short selling in the financial supervisory exchange’s comprehensive inspection.

Regarding the timing of the resumption of short selling, he added, “At this level, it is appropriate to extend the prohibition period for short selling. Resumption of short selling is possible when the market process is established right away.”