Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Korea's first alternative trading system to debut in 2024
Korea Financial Investment Association (KOFIA) Chairman Na Jae-chul speaks during a press conference at its headquarters on Yeouido in Seoul, Tuesday. Courtesy of Korea Financial Investment Association
By Lee Min-hyung
By Lee Min-hyung
The nation's first alternative trading system (ATS) will start operating in 2024 amid hopes for more capital inflow and the stabilization of the local securities market, Korea Financial Investment Association (KOFIA) Chairman Na Jae-chul said, Tuesday.
“We plan to receive a preliminary license to operate the system by the end of this year under the goal of starting operations sometime around early 2024,” Na told reporters during a press conference.
The ATS is a non-exchange trading platform prevalent in developed capital markets abroad. In Korea, the Korea Exchange has been the sole stock trading authority for over six decades. The industry anticipates that the debut of the first ATS here will reshape the stock market by ending the monopolistic status of the single exchange operator.
Na underscored that the establishment of an ATS would help attract more capital into the local asset market during this period of global monetary tightening.
“Even if the stock trading volume has recently declined due to the change in the financial circumstances here and abroad, the ATS will serve as momentum to expand liquidity,” he said. “We believe that the earlier establishment of the system is expected to stabilize the stock market.”
KOFIA and securities firms are still in talks to finalize the legal procedures for the establishment of the ATS no later than the end of this year, according to the chairman.
In 2019, KOFIA set up a committee for the establishment of the ATS. The members of the committee include the association and a group of top-tier brokerage houses here, including Mirae Asset Securities, Samsung Securities and NH Investment & Securities.
Na also pledged to help financial industry players expand their footholds into the digital asset market, the growth potential of which remains high amid the recent rise of crypto investments.
“The industry pays special attention to emerging digital asset businesses such as cryptocurrencies and non-fungible tokens,” he said. “We will deliver the industry's opinion to the National Assembly,” he added.