From Experience to System... Korea Exchange Launches New Market Surveillance System

Automation and Systematization... Enables Faster Response

[Asia Economy Reporter Minwoo Lee] The Korea Exchange is revamping its market surveillance system. The plan is to shift from intuition and experience-based surveillance by individual officers to a standardized system-centered approach.

The Korea Exchange Market Surveillance Committee announced on the 30th that it has officially launched the new market surveillance system (CAMS) this month to effectively respond to the changing market surveillance environment.

First, in addition to direct information such as quotes, trades, and account information, a large volume of various internal and external indirect information?including disclosures, companies, individuals, news, bulletin boards, and spam messages (approximately 140,000 bulletin board posts, about 100,000 company and individual records, and 10,000 disclosures, news, and spam messages daily, totaling about 250,000 items per day)?will be acquired and utilized for various analytical tasks.

Surveillance by type will also be standardized. The accumulated experience of market surveillance experts will be standardized into core judgment criteria and work procedures for each type of unfair trading, which all market surveillance officers can routinely use, and these will be reflected in the system.

Pre-analysis functions will be strengthened as well. Market surveillance officers will be able to 'view and judge at a glance' the overview and suspicion of allegations, and standardized pre-analysis results will be provided clearly on a single screen to enable rapid detailed analysis.

Additionally, devices for more precise surveillance have been established. Besides the existing dragnet-style surveillance system, which broadly assesses suspicion possibilities and extracts multiple cases for detailed analysis, a 'targeted surveillance system' will be added that identifies transactions with a very high likelihood of suspicion based on legal requirements and extracts them quickly every day.

Through this, the Korea Exchange expects that the joint surveillance system among related agencies will operate efficiently, from notifying supervisory authorities of suspicious transactions based on surveillance results to sufficiently presenting materials centered on legal requirements, significantly shortening the processing period for suspected unfair trading transactions.

A Korea Exchange official stated, "Even if new types of unfair trading emerge, we will be able to respond quickly by adding them to the extraction and analysis tools for each type of unfair trading. With the introduction of CAMS, we will strengthen our analytical capabilities for new types of unfair trading using algorithmic trading, establish a virtuous cycle system that systematizes newly analyzed types, and continuously enhance cooperation among related agencies."

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