“The KOSPI 3,000 reflects a positive evaluation of the fundamentals… I can’t tell the’stock bubble'”
On the 26th, the chairman of the Korea Exchange, Son Byeong-du, said, “We will strengthen the preliminary inspection and follow-up management of short selling and collect market opinions to improve unreasonable systems and practices.”
Chairman Son said at the New Year’s press conference held live on YouTube on the same day, “We plan to improve the short selling system, focusing on the management of short selling by market makers, and quickly establish a detection system to eradicate illegal short selling so that market trust can be restored.”
He said, “We will expand disclosure of information related to short selling and abolish the exception of the uptick rule for short selling quotes to market makers in the stock market,” he said. “We will shorten the period of checking suspicious transactions from 6 months to 1 month while continuing to violate the obligations of market makers. So I will check it.”
The exchange is planning to prepare detailed plans so that the market maker system improvement plan can be implemented before the ban on short selling ends.
However, as regards the timing of the resumption of short selling, Chairman Son said, “The timing and method of short selling resumption is a matter determined by the Financial Services Commission, so the exchange is not appropriate to mention.”
In addition, he said, “In order to resolve the’sloping playground’, which is disadvantageous compared to institutions and foreigners, it is necessary to improve the accessibility of short selling by individual investors,” he said. “Because we are conscious of the risks that will be provided if opportunities expand indiscriminately, we plan to approach carefully. “He said.
Recently, as a result of a special supervision on the short selling of market makers, the exchange detected some suspected violations and notified the supervisory authorities.
Regarding this, Chairman Son said, “If you want to take further action, you have to hear the clarification first, and the results of the supervision may change accordingly. If you disclose the results now, it may cause market confusion.” Explained.
Regarding the’stock bubble’ controversy, he showed a cautious attitude, saying, “Considering that stock prices around the world have been good and that various industry paradigms are changing, it is impossible to decide whether it is a bubble or not.”
However, he stressed, “The KOSPI surpassed 3,000 and rose to 3,200 as a result of positive evaluation of our stock market fundamentals,” he said. “It cannot be denied that the role of individual investors was the most important among them.”
He also revealed plans to develop various ESG (environmental, social, governance) related indices.
Chairman Son said, “We are reviewing the development of indexes related to gender equality among the’S’ of ESG (Environmental, Social and Governance), and the index that focuses on climate change and focuses on companies related to low-carbon solutions such as renewable energy and electric vehicles.” said.
Chairman Son expressed a positive view over the introduction of an alternative exchange (ATS), saying, “It has been known that the exchange has been opposed to it, but I think the time has passed.”
He said, “A healthy competitive environment will be created between trading platforms,” he said. “When the establishment of ATS becomes concrete, the exchange plans to closely consult with ATS for market monitoring and service stability.”
Regarding the Financial Supervisory Service’s comprehensive inspection of the exchange, which is being promoted in 11 years, Chairman Son said, “Since this is a comprehensive inspection that has been done in a long time, we plan to respond to the inspection with sincerity.”
He objected to the opinion that the exchange should be designated as an audit target for the auditor, saying, “There is a concern that it will weaken management autonomy and competitiveness.”
“There is no case of selecting an exchange, which is a private institution, as a subject of national audit among OECD countries,” he said. “I agree with the purpose of strengthening public regulations for investor protection, but also as a control device for the existing Financial Services Commission and Financial Supervisory Service inspections. Will achieve,” he explained.
Chairman Son drew a line regarding the possibility of developing bitcoin derivatives, saying, “virtual currency including bitcoin has not yet been incorporated into institutional assets. In such a situation, it is premature to consider it as an underlying asset for derivatives.” .
/yunhap news