South Korean FSS could ease fines or sanctions on market makers
South Korea’s financial watchdog could relax fines or sanctions on brokerage houses for alleged irregular market-making practices that were all but shut down on local stock exchanges after the rare sanction was alerted.
Financial Supervisory Service (FSS) Governor Jeong Eun-bo, in his meeting with representatives of brokerage houses on Tuesday, said the government “will abide by securities firms’ self-correction measures after disclosing the survey results “.
The meeting was attended by Na Jae-cheol, chairman of the Korea Financial Investment Association, Choi Hyun-man, vice chairman of Mirae Asset Securities, and Jung Il-moon, managing director of Korea Investment & Securities.
Most of the 14 brokerages named as market markers have opted out of their roles since September after nine were warned of a combined fine of 48 billion won ($ 41 million) for disrupting the order of the market through unsuitable offers and offers.
Market making brokerages act to stimulate trade in a target stock by quoting back and forth or showing the bid and ask price of the stock during trading hours on the exchanges. .
He pointed out that the FSS will improve its 24-hour on-site audit system to help risk-vulnerable sectors detect risks in advance and deal with them effectively.
Jeong also discussed with executives how the FSS can help improve the profitability of the country’s retirement pensions by actively helping financial companies find better solutions to improve profitability.
By Moon Ji-woong and Lee Eun-joo
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