KRX pre-announces revision to introduce individual-based monitoring
Financial data is displayed on screens installed in the lobby of the Korea Exchange, Korea's main bourse operator, Aug. 10. Yonhap
Korea's main bourse operator said Monday it has recently pre-announced revisions to market regulations aimed at establishing a market surveillance system based on individuals rather than accounts.
Under the proposed revision, brokerages and other market entities registered as members of the Korea Exchange (KRX) will be required to submit market surveillance-related data to the KRX's Market Oversight Commission.
"Such a measure is aimed at improving market oversight by shifting from an account-based system to an individual-based system that combines account details and encrypted personal identification numbers," the KRX said.
The current account-based system has often resulted in excessive monitoring and makes it difficult for authorities to detect links between accounts held by the same individual. The new approach is expected to reduce the number of subjects under analysis by 30 to 40 percent, according to officials.
The move follows the joint announcement last month by the KRX, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) of a set of comprehensive measures to tackle illegal stock trading.
The KRX said it plans to gather feedback by early September and finalize details of the revision.