South Korea examines stock short-selling, which begins with Morgan Stanley

South Korea examines stock short-selling, which begins with Morgan Stanley

September 01, 2022: -South Korea’s financial regulator has examined the short-selling of shares by significant brokerages and branches of foreign companies to tighten supervision of such trading.

The Financial Supervisory Service (FSS) had started an inspection of short-selling transactions by the Seoul branch of Morgan Stanley and is expecting to widen the probe into additional outlets, an FSS official said on Tuesday.

The official added that the inspection was not based on any specific suspicion or allegation of wrongdoing and was not targeting any particular company. But it was part of its efforts to strengthen monitoring of short selling, which is the sale of borrowed shares, benefiting the seller if prices decrease.

“We can’t look into all the companies, so the inspection will most likely be focused on big players,” the official said, which adds that no time frame for the work had been set.

Morgan Stanley’s branch is one of some financial services firms most actively undertaking short-selling of claims. South Korea has recently been allowed to resume after a suspension but beneath many restrictions, such as tradable stocks.

Data from Korea Exchange offers local branches of foreign companies such as Merrill Lynch, Credit Suisse, Goldman Sachs, and UBS were also among the major parties in stock short-selling.

President Yoon Suk-yeol, who took office in early May, ordered thorough supervision of the short-selling of derivatives, which many South Korean retail investors have complained about and deepened the local stock market’s falls.

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South Korea examines stock short-selling, which begins with Morgan Stanley
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South Korea examines stock short-selling, which begins with Morgan Stanley
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South Korea’s financial regulator has examined the short-selling of shares by significant brokerages
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The Women Leaders
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