[Asia Economy Reporter Park So-yeon] The unlisted stock trading platform 'PSX (Seoul Exchange Unlisted)' is pushing forward with the establishment of an Alternative Trading System (ATS).
According to the financial investment industry on the 16th, PSX recently selected a management consulting firm with the goal of applying for ATS business approval next year.
They plan to seek comprehensive advice on shareholder composition plans for ATS registration, executive appointments to stably lead the initial business, a minimum fee-based business model, crisis response, and overseas expansion possibilities. The initial capital is expected to be around 130 billion to 150 billion KRW.
Recently, fueled by the 'Donghak Ant' craze, the financial investment industry is promoting the establishment of ATS.
Since the legal basis for ATS establishment was laid in 2013, attempts have been continuously made, but due to trading volume regulations, concerns about profitability, and opposition stemming from political interests, momentum has not been gained. In 2018, discussions resurfaced in line with the government's job creation efforts, but the ongoing bear market caused the talks to subside again. However, since last year, with the stock market rebound and active stock trading, discussions on introduction have gained momentum once more.
If an alternative trading system is established, it is expected that the monopoly structure will be dissolved, and through competition, investors' costs such as fees will be reduced. However, from a business perspective, the challenge remains to find a differentiated business model from existing exchanges.
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