The Securities and Futures Commission Delays 48 Billion KRW Fine Sanctions on 9 Market Makers

[Asia Economy Reporter Ji Yeon-jin] The Securities and Futures Commission under the Financial Services Commission discussed the agenda on fines for market makers on the 13th but failed to reach a final conclusion. As a result, the disruption of the market maker system, which has been suspended since September last year, is expected to last longer.

According to financial authorities, the Securities and Futures Commission reviewed the disciplinary agenda on market makers submitted by the Financial Supervisory Service (FSS) on the day but did not reach a conclusion.

Previously, in September last year, the FSS notified nine securities firms of fines totaling 48 billion KRW on charges of 'market manipulation disrupting market order' for excessively frequent quote corrections and cancellations while acting as market makers domestically and internationally.

The securities industry protested, claiming they were accused of illegal acts despite complying with the regulations under the market maker system, and Korea Exchange exempted the obligation of market making since September last year, effectively suspending the market maker system to date.

The market maker system is a mechanism where the exchange and securities companies enter into a market making contract once a year and continuously provide two-way quotes for pre-designated stocks (market making target stocks) to enhance liquidity.

As of the end of last year, the securities firms that signed market making contracts include Goldman Sachs, Kyobo Securities, Meritz Securities, Mirae Asset Securities, Bookook Securities, Shin Young Securities, Shinhan Financial Investment, SG Securities, Ebest Securities, Korea Investment & Securities, Hanwha Investment & Securities, CLSA Korea, KB Securities, and NH Investment & Securities, totaling 14 firms.

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