- TITAN
Korea Plans to Improve Rules on Market Makers & Tighten Monitoring of Illegal Short Sale Trades
December 22nd | 2020

Korea’s Financial Services Commission recently introduced measures to improve market maker rules and strengthen detection of illegal stock short-selling activities. The goal is to boost accountability in the market and to establish an effective monitoring system for illegal short sales. A few of the initiatives the FSC is pursuing with respect to short sales by market makers include:
A ban on market makers’ short selling of mini-KOSPI 200 futures and options
Discontinuing the uptick rule exemption for market makers in stock markets to address the issue of unfairness
Developing an automated monitoring and detection system for naked short selling activities and violation of the uptick rule
Setting up a new, special regulatory team devoted to short sale monitoring