"Real-Time Short Selling Monitoring"... Korea Exchange Organizational Restructuring

Establishment of Real-Time Short Selling Surveillance Organization
Strengthening Market Operation Functions in Response to COVID-19 Situation
"To Develop Busan Headquarters as a Derivatives and Clearing Financial Hub"

[Asia Economy Reporter Minwoo Lee] The Korea Exchange (KRX) is undertaking an organizational restructuring to enhance market stability and develop Busan, where its headquarters is located, into a financial hub. While strengthening the market operations sector by establishing a real-time short-selling monitoring team, it also plans to reinforce the central clearinghouse (CCP) functions at its Busan headquarters.

The Korea Exchange announced on the 22nd that it is implementing the restructuring to bolster market operation stability amid the COVID-19 pandemic and to respond to the opening of the "Busan Headquarters 2.0 Era."

Accordingly, the market operations organization and personnel will be significantly expanded. The KOSDAQ disclosure team will be expanded by adding one more Disclosure Practice Team, and six Market Operation Support Task Forces (TFs) will be established in each market headquarters. Along with organizational expansion, additional market operation personnel will be deployed to existing market operation teams.

For non-market operation organizations, considering the ongoing COVID-19 situation, 11 teams mainly in external affairs will be temporarily reduced. As a result, the current structure of 35 departments, 6 offices, 1 center, 114 teams, and 7 TFs will change to 35 departments, 6 offices, 1 center, 111 teams, and 3 TFs. A KRX official explained, "Since market operation stability is paramount during the COVID-19 situation, we are expanding market operation organizations and personnel to strengthen emergency market operation systems such as distributed and rotational work."

Short-selling management will also be strengthened. A dedicated team for real-time monitoring and post-management (Special Inspection Team) will be newly established. This is to enhance oversight so that the short-selling system, which attracts high market interest, operates legally and transparently. Accordingly, the scope of inspections will be expanded and the inspection cycle shortened, significantly strengthening short-selling audits.

Additionally, the organization of the CCP and Trade Repository (TR) divisions at the Busan headquarters will be reinforced. The TR Business Office will be upgraded to the TR Business Department, and further organizational restructuring to enhance the independence and expertise of CCP functions will be implemented in the first half of this year. Through this, Busan aims to strengthen its status as a financial center for derivatives and clearing.

A KRX official stated, "After the end of COVID-19, we plan to promote functional organizational restructuring to transform the Korea Exchange into a more efficient organization."