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[Alpha Biz=(Chicago) Reporter Kim Jisun] Following Shinhan and Hi Investment & Securities, eBEST Investment & Securities decided to quit its job as a market creator on the Korea Exchange, which supplies liquidity to the stock market.
According to the financial investment industry on the 5th, eBEST Investment & Securities has decided to withdraw from the exchange's market creation business from this month. eBEST Investment & Securities has already failed to play the role of market creator since the third quarter due to the recent transfer of all those in charge. Previously, eBEST Securities signed a market creation contract with the Korea Exchange in August last year to provide liquidity to 228 KOSPI and KOSDAQ stocks.
Market creation is a system introduced by the exchange in 2016 to help investors trade stocks smoothly. Securities firms that have signed contracts with the exchange will be in charge of increasing stock market liquidity by closely presenting two-way buying and selling prices to stocks that lack trading volume.
eBEST Securities is not the only securities company that has returned its status as a market creator on the exchange this year. Earlier in the second quarter, Shinhan Investment & Securities terminated its market creation contract on the KOSPI and KOSDAQ markets and Hi Investment & Securities on the KOSDAQ market, respectively. As a result, the number of market builders, which reached 8 KOSPIs and 9 KOSDAQs at the beginning of the year, has now decreased to 6 KOSPIs and KOSDAQs, respectively.
Compared to the third quarter of 2021, when KOSPI was 14 and KOSDAQ was 13, it was less than half in two years. It was found that only Meritz Securities responded to the recent receipt of additional applications from the exchange. The ratio of securities firms meeting their market creation obligations also exceeded 90 percent except for one company in the fourth quarter of last year, but fell to 62.79 percent on the KOSPI and 54.70 percent on the KOSDAQ in the third quarter of this year.
Against this backdrop, the exchange will come up with a new plan to improve the market creator system at the end of this year.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
