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[Alpha Biz=(Chicago) Reporter Paul Lee] Additional explanations from the Korea Exchange, the Korea Deposit Insurance Corp., the Korea Securities Finance Corp. and the Korea Financial Investment Association on the draft plan to improve the public sale system, which was unveiled on the 16th, were released on the 27th.
Earlier on the 16th, the people's power, financial authorities and the financial investment industry held a meeting of the National Assembly and announced a draft plan to improve the public sale system.
First of all, the repayment period for short-selling investment by investors and foreign and institutional investors was unified to 90 days. In addition, the current 120% collateral ratio for individual investors' short selling transactions will be reduced to 105%, the same as that of institutions and foreign investors.
In order to prevent Naked short selling, we decided to introduce a computer system. The plan calls for the government to establish a system that manages its own sellable balances for 21 foreign and 78 domestic companies, except for institutional investors with small transactions. As the target institutional investors who did not have a computer system said they would prevent short stock selling orders, it is actually an order to introduce a computer system.
The real-time naked short selling detection system will also be reviewed.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
