"Isn't it still possible for small-scale corporations to engage in naked short selling?"
"That is not the case."
On the 13th, the Financial Supervisory Service, Korea Exchange, and Korea Financial Investment Association announced that they will produce and distribute an e-pamphlet titled 'Questions and Truths about Short Selling System Improvements' ahead of the resumption of short selling.
This pamphlet features a Q&A format addressing market concerns related to the resumption of short selling. In particular, it includes various illustrations and easy-to-understand explanations to enhance comprehension.
For example, regarding whether naked short selling by small-scale corporations is still possible, or if purchasing stocks after placing a naked short sale order on the same day makes it undetectable by the National Short Selling Detection System (NSDS), the pamphlet provides the answer "That is not the case" along with detailed explanations.
In response to market concerns about evading surveillance through manual loan transaction manipulation, it states, "Balance manipulation can be detected. Balance management is subject to dual monitoring through internal controls involving checks and supervision by an independent department and evidence requirements by the NSDS."
The pamphlet is scheduled to be distributed starting from the 14th, ahead of the short selling resumption at the end of this month. The Financial Supervisory Service stated, "We plan to actively communicate while listening to the voices of market participants to dispel unnecessary misunderstandings about the resumption of short selling."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
