Son Byung-du, Exchange Chairman, "We Will Strengthen Surveillance Capabilities in the CFD Market"

"Actively Preparing for the Securities Token Market"

[Image source=Yonhap News]

Son Byung-doo, Chairman of the Korea Exchange, announced on the 11th that he will strengthen surveillance capabilities against unfair trading activities related to Contracts for Difference (CFD).

Chairman Son stated at the National Assembly's Finance and Economy Committee plenary session that, in response to Min Byung-duk of the Democratic Party's call to "take measures such as monitoring abnormal transactions related to CFDs," "As the CFD market is rapidly growing, it is necessary to enhance surveillance capabilities."

Song Seok-jun of the People Power Party urged the need to respond to new types of stock price manipulation, saying, "Surveillance functions should be supplemented in cases of long-term stock price manipulation." Existing unfair trading activities involved using undisclosed information or favorable news to boost stock prices within a short period of up to 100 days. The Soci?t? G?n?rale (SG)-triggered stock price crash is suspected to be a new method involving collusive trading over a long period of more than three years using CFDs.

Regarding this, Chairman Son emphasized, "We are discussing institutional improvement measures through close consultations with authorities to prevent recurrence."

He also mentioned the passage of the "Virtual Asset User Protection Act," which includes provisions to protect virtual asset investors. Chairman Son said, "I understand that this legislation was enacted based on the intention that transparent information disclosure, promotion of competition and innovation are important, and investor protection must also be achieved," adding, "We are currently preparing to launch a security token market within this year."

Security tokens refer to securities issued in token form using blockchain technology based on real assets, unlike general virtual assets. Financial authorities plan to allow the issuance of security tokens and institutionalize over-the-counter trading platforms. The Korea Exchange will be responsible for listing and distributing security tokens.

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