이 누리집은 대한민국 공식 전자정부 누리집입니다.
Biz News Korea(Eng)
Korea’s new short-selling disclosure rule raises questions in effectiveness
- Collected
- 2016.07.09
- Distributed
- 2016.07.11
- Source
- Go Direct
이미지 확대From July 5, investors have been required to report their short-selling trade details if their short-selling balance exceeds 0.5 percent of outstanding shares or more than 1 billion won (roughly $860,000).
According to the Korea Exchange on Thursday, nine out of 19 biggest short sellers were foreign securities companies including Morgan Stanley, Merill Lynch and Glodman Sachs. Of all 418 cases in short position, 96.2 percent, 402 cases were held by foreign securities companies while nine domestic investors held the rest 16 cases, 3.8 percent together.
The disclosure does not affect foreign hedge funds or asset management companies that are said to be attributable for more than 95 percent in short sales of Korean shares.
These funds usually use swaps where they hire brokerage firms to make short selling transactions to hide their investment strategies and portfolio.
An unnamed official from a domestic asset management firm said that the new rule only ended up having domestic players expose their investment strategies without affecting the actual big players like foreign hedge funds and asset management firms.
Even individual investors who had been in favor of the disclosure rule are now petitioning against the ineffective rule. The Financial Services Commission (FSC) said that it is too early to talk about the effectiveness of the regulation.
By Choi Jae-won
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]