FSS Provides Guidelines for Internal Controls and Stock Balance Management System for Short Selling
On 20 August, the FSS provided guidelines for the internal control and stock balance management system for institutional investors that plan to engage in short selling in Korea.
The time frame to complete the internal control and stock balance management system is to complete them by end of this year.
The time frame to complete the internal control and stock balance management system is end of this year.
On 20 August, the FSS provided guidelines for the internal control and stock balance management system for institutional investors that plan to engage in short selling in Korea.The primary purpose of these guidelines is to prevent naked short selling.
The stock balance management system is an internal computer system that the institutional investors need to install on their own. This system will work in conjunction with the Naked Short Selling Detection System (NSDS) which is scheduled to be installed at the Korea Exchange by March 2025.
The time frame to complete the internal control and stock balance management system is end of this year. The FSS is likely to allow short selling of Korean stocks by early April 2025 and institutional investors need to have the appropriate systems in place so that they pass the regulatory scrutiny of short selling through proper means and not using naked short selling.
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