“At least the roadmap must be prepared and resumed… the financial supervisor must show a responsible attitude”
Proposal for amendment to the Capital Markets Act’Blocking off prior non-borrowing short selling’… “February Congressional Treatment”
[서울=뉴스핌] Reporter Jo Jae-wan = Park Yong-jin, a Democratic Party member, called for an extension of the period for banning short selling, saying, “At the current level, it is appropriate to extend the ban on short selling.”
Rep. Park held a press conference at the National Assembly Communication Hall on the morning of that day, saying, “It is an irresponsible attitude of the financial authorities to resume (short selling) without a system in place and a fixed roadmap.”
Regarding the prohibition period, he said, “There is no separate opinion on how long it would be better to do that,” he stressed that “the short sale should be complete or a clear roadmap for the points that need institutional improvement.”
“(Financial authorities say they will continue to pursue reorganization), but this is no different than not being able to talk about specific alternatives. The financial authorities need a responsible attitude. It makes no sense to say’continue to pursue institutional improvement’.” Pointed out.
| [서울=뉴스핌] Reporter Lee Hyung-seok = Democratic Party lawmaker Park Yong-jin is holding a press conference on the morning of the 24th at the communication hall of the National Assembly in Yeouido, Seoul. 2021.01.24 [email protected] |
It is also planning to promote related legislation aiming to block non-borrowing short selling in advance with the aim of handling it within the National Assembly session in February.
Rep. Park explained, “We intend to supplement the current system by introducing a system to block short selling in advance,” and said, “The amendment is intended to allow securities companies to establish a preliminary monitoring system by themselves in order to strengthen the responsibility of securities companies and the obligation to confirm short selling.”
“Before the sale, the securities company is equipped with a computer to check whether the stock borrowed through the electronic system and then have its own electronic system to place a sell order, while the financial authorities put in a mandate to manage and supervise it. “Illegal short selling also includes a clause that blocks the possibility of forgery or alteration of evidence, and punishes intermediaries when violating them.”
Regarding the Financial Services Commission, he accused him of “ignoring the usual procedures and being suspicious of concealing the case by passing through the Financial Supervisory Service.”
Rep. Park said, “According to the results of the supervisory investigation of the exchange, 3 market makers out of 22 market makers were found to sell illegally over 20, 8, and 1 day respectively. Simply 3 brokerage companies for a day or 1- He said, “It is not that he has committed an illegal short sale twice,” he said. “Even so, the Financial Services Commission is reluctant to disclose specific details such as the quantity and item of short selling in this investigation for security reasons.”
“According to the usual procedure, the FSS should be included in the investigation process. However, the FSC passed the FSS to thoroughly exclude it from the entire process, such as case investigation assignments and notification of results,” he said. “In the process of detecting short selling and improving the system, I doubt that there is another intention.”
He urged that prior to the resumption of short selling ▲ the Financial Supervisory Service’s re-investigation of illegal activities ▲ the Financial Supervisory Service’s expansion of the scope of comprehensive exchange inspections should be preceded.
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