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[Alpha Biz=(Chicago) Reporter Kim Jisun] The Korea Exchange plans to establish a new standard for extracting abnormal transactions and expand and reorganize the organization of the market monitoring headquarters to prevent long-term unfair trade attempts in advance.
The Korea Exchange Market Monitoring Committee announced on the 25th a comprehensive improvement plan to upgrade the capital market unfair trade monitoring system. The exchange has been discussing ways to improve the situation such as financial and investigative authorities since the massive manipulation in April this year.
Under the plan, the Korea Exchange will set new six-month and annual standards to extract abnormal transactions. The move comes after it was pointed out that it failed to catch a long-term large-scale stock price manipulation case as the existing extraction standard was only 100 days.
It also decided to diversify the technique of verifying the link between suspected accounts. The move is aimed at quickly detecting suspected stock price manipulation even if stock price manipulation forces mobilize large amounts of IP detours and borrowed-name accounts. Specifically, the similarity of trading patterns (similarity of trading items, concentration of transactions between accounts, etc.) will be analyzed and used as a database (DB) to actively analyze suspected accounts.
The exchange will also improve the market warning system. The exchange decided to establish a new requirement to point out ultra-long-term investment warnings to reflect soundness, such as trading patterns, for stocks that rose more than 200 percent from stock prices a year ago.
The exchange plans to strengthen the management of CFD accounts. Specifically, the CFD will also consider ways to secure transaction information from actual investors and use it to detect unfair transactions.
It also strengthens cyber surveillance capabilities. It plans to diversify cyber information collection media and further improve related information analysis infrastructure so that allegations of unfair trade can be caught in vast amounts of data. At this time, important reports are all shared by the Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange.
In addition, the exchange will operate a consultative body of experts that can collect market information and external opinions such as unfair trade trends and reorganize the market monitoring headquarters of the exchange.
The entire process from extraction of abnormal transactions to notification of charges will be carried out in a single department, and a department dedicated to preventive work such as preventive measures will be established to expand and reorganize the organization from the existing 6 departments to 7 departments.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
