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[Alpha Biz=(Chicago) Reporter Paul Lee] It has been confirmed that not only BNP Paribas and HSBC, which were caught last year, but also two other global investment banks (IB) illegally sold 50 billion won.
The Financial Supervisory Service said on the 15th that it has found that global IB 2s submitted orders for naked short selling worth 54 billion won for five stocks between 2022 and 2023. Short selling is an investment technique that borrows and sells stocks and then buys stocks and pays back them later when stock prices are expected to fall, and "non-borrowing short selling" that sells them in advance without borrowing stocks is illegal in Korea. The Financial Supervisory Service is conducting a full investigation into the top global IBs of domestic short stock selling transactions in the wake of the illegal short stock selling by BNP Paribas and HSBC last year.
According to the FSS investigation, Company A ordered the sale of shares while more than the actual borrowed balance because the stock borrowing details were entered in duplicate, and also ordered the sale of stocks that cannot be disposed of because they were provided to the outside as collateral. Since then, there has been a shortage of payments the day after the transaction, but it has repeated the practice of paying with post-borrowing.
Company B operated several departments in the company and placed a sale order based on this by double calculating the shares held in the process of borrowing or selling stocks between departments. In addition, by manually entering the loan details into the balance management system, the borrowing quantity was entered incorrectly, and the sale order was placed without the borrowing was confirmed.
The FSS will also conduct an investigation into other IBs as soon as possible.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
