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[Alpha Biz=(Chicago) Reporter Kim Jisun] The Korea Exchange will be able to look into actual investors in CFD accounts during market monitoring.
Since CFD is grouped into a kind of "bundle" and traded in a single CFD account, it has been difficult to identify actual investors' trading patterns when monitoring unfair transactions.
According to the financial authorities on the 31st, the Securities and Futures Commission under the Financial Services Commission last week approved the results of a voter interpretation of whether the exchange can use actual investor information from its flagship account for market monitoring.
CFD was characterized by anonymity being covered by real investors. When an individual makes CFD transactions, securities firms place orders to foreign securities firms with a contract, while foreign securities firms receive a number of orders and place CFD orders. All CFD transactions by ordinary individual investors are also caught as foreign institutions, and foreign securities firms that have signed TRS transactions will appear as trading channels.
In fact, the exchange found a number of additional cases of unfair trade as a result of the CFD survey. There were many undisclosed information utilization activities using the anonymity of CFD accounts, and the amount of unfair gains estimated against the principal of investment was also large due to the leverage characteristics of CFD.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
