Bloomberg reported that South Korea has unveiled details of a short selling monitoring system to spot illegal trades. The platform will detect naked short sale transactions, and its launch is seen as crucial for removal of a short sale ban.
“South Korea is developing a platform to monitor short-selling that can help identify illegal transactions, a crucial step for the government to reintroduce the trading strategy,” Bloomberg writes. The platform will be managed by Korea Exchange and can identify trades that short stocks without first borrowing them, according to a joint statement from the Financial Supervisory Service and the bourse. The statement didn’t offer details on the launch date.
In a separate article, Bloomberg reported that Credit Suisse faces $36 million short sale fine from Korean regulators as it probes legacy short sales.