Exchange Holds Emergency Response Committee Meeting... Strengthening Market Surveillance and Focusing on Illegal Short Selling Inspections

[Asia Economy Reporter Oh Ju-yeon] As volatility in domestic and international stock markets increases due to the global spread of the novel coronavirus infection (COVID-19), the Korea Exchange announced on the 10th that it held an 'Emergency Countermeasures Committee' and decided to strengthen market surveillance against unfair trading such as illegal short selling.

The Exchange explained that, anticipating continued instability in the domestic stock market due to the global market crash caused by COVID-19, it has upgraded the previously operating 'Market Inspection Meeting' to an 'Emergency Countermeasures Committee.'

After intensively reviewing recent trends in major overseas financial markets, it is forecasted that as stock markets in major countries show a sharp decline, the negative impact on the Korean stock market will deepen for a considerable period, and stock price volatility will increase.

Accordingly, the Exchange will closely monitor domestic and international market indicators such as foreign and institutional investor trends, short selling, open interest, and spot-futures linked positions.

In addition, it will focus on inspecting unfair trading, especially illegal short selling, and take measures such as immediately notifying relevant authorities upon detection, while cooperating closely with financial authorities to ensure stable market operation.

This content was produced with the assistance of AI translation services.