All Entries in the "Korea Financial Services Commission (FSC)" Category
Korea FSC Reporting System for High Volume Short Sales
BACKGROUND Since the global financial crisis, major economies have adopted a reporting regime for high volume short sales in line with global discussions* to enhance transparency of short selling. *Principles for Short Selling Regulation proposed by the International Organization of Securities Commission (IOSCO) on June 2009. * Provide ready access to information on short selling [...]
Excerpt from Korea FSC 2012 Financial Policy Agenda
As Europe’s ongoing debt crisis is expected to threaten global economic growth and increase volatility in global financial markets next year, Korea is also likely to face an economic slowdown, which will deal a severe blow particularly to SMEs and low-income households. Under such circumstances, the FSC set three main financial policy goals with six [...]
Korea FSC Best Practice Guidelines for Hedge Funds and Prime Brokers
I. Hedge Funds 1. Guidelines for internal control and risk management Hedge fund management firms are required to set guidelines for internal control over hedge fund management, which include work manuals for executives and employees, and designate persons in charge of internal control matters. In order to manage risks involved in hedge fund investment, hedge [...]
Korea FSC Lifts Temporary Short Selling Ban
The FSC decided to lift a three-month ban (August 10 – November 9) on short selling of non-financial stocks from November 10, while maintaining the ban on financial stocks for a while. Stock market volatility has been considerably subdued since August when the financial market turmoil began to unfold.* * KOSPI: 2,172 (Aug.1) →1,801 (Aug. [...]
Korea FSC Proposed Revision of Regulations on Financial Investment Business
BACKGROUND With the revision of Enforcement Decree of the Financial Investment and Capital Markets Act (FSCMA) publicly announced on September 30, aimed at introducing home-grown hedge funds (tentatively named “specialized private equity funds”) to Korea’s capital markets, the FSC proposed a revision of Regulations on Financial Investment Business in order to stipulate details mandated under [...]
Korea FSC To Overhaul Financial System
1) Develop Korea Investment Banks 2) Improve Fund Management industry 3) Reform market structure to allow exchange and clearing competition 4) Allow for other capital raising products 5) Strengthened Regulations on Unfair Trading Practices BACKGROUND The Financial Investment Services and Capital Markets Act (“FSCMA”) was established in 2007 as a comprehensive overhaul of capital markets [...]
Korea FSC Bans Deutsche Bank
Violation of prohibition on market manipulation through the link between spot and futures by KOSPI200 stocks and derivatives trading on November 11, 2010, a KOSPI200 options’ expiry date. Case Overview According to investigation results, AAA1), who is head of Absolute Strategy Group (ASG) – Asia of Deutsche Bank AG Hong Kong Branch, DDD, who is [...]
Korea FSC Regulatory Measures For Nov 11 Stock Market Plunge
Background The Financial Services Commission (FSC) and Financial Supervisory Service (FSS) have developed measures to improve derivatives-related trading system jointly with the Korea Exchange (KRX) and the Korea Financial Investment Association (KOFIA) based on the investigation of risk management status of financial investment companies and a public hearing held on December 20, 2010 after the [...]
