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Korea Exchange. (Photo = Korea Exchange) |
[Alpha Biz= Kim Sang Jin] The Korea Exchange (KRX) announced on March 30 that it has identified 76 suspected violations related to short selling over the past year using its centralized monitoring system and has reported them to financial authorities.
According to the KRX, the Naked Short-selling Detection System (NSDS) analyzes position data submitted by institutional investors alongside trading data collected by the exchange to automatically detect suspicious activities, including potential naked short selling.
The system was launched on March 31 last year in conjunction with the full resumption of short selling. A total of 24 institutions are participating in the NSDS, including eight foreign financial firms, 14 domestic securities companies, and two asset management firms.
From March 31 last year through March 27 this year, total short-selling transaction value reached KRW 289.32 trillion. Of this, NSDS-participating institutions accounted for KRW 264.19 trillion, representing 91.3% of total short-selling activity.
The exchange said it monitors an average of 15 million sell orders per day from participating institutions to identify irregularities. Most detected issues were attributed to system errors or human mistakes, for which corrective measures have been implemented.
Among the findings, 76 cases—including suspected naked short selling, violations of order marking requirements, and breaches of the uptick rule—were reported to financial regulators for further review.
AlphaBIZ Kim SangJin(ceo@alphabiz.co.kr)
