The Financial Supervisory Service held a meeting to listen to securities firms regarding changes in their order systems ahead of the launch of the alternative trading platform and the resumption of short selling.
On the 20th, the FSS held an open discussion titled "Improving Stock Market Infrastructure" at the Korea Exchange in Yeouido, Seoul. This meeting was intended to check the market conditions ahead of the full-scale launch of the alternative trading platform, NextTrade, on the 4th of next month and the resumption of short selling on the 31st.
On that day, Director Lee noted, "The computerization of short selling is a global public-private partnership initiative being attempted for the first time in the world, which will significantly enhance the credibility of our capital market," and added, "The launch of the alternative trading platform will greatly expand investor choices and increase transaction convenience."
He expressed intentions to focus supervisory capabilities on infrastructure improvements. Director Lee stated, "It is essential to carefully check whether there are any shortcomings in the introduced systems before implementation, as they are being introduced for the first time," and added, "We will establish a fair and transparent financial paradigm."
He announced that tasks to improve the fundamental structure of the Korean stock market would be pursued consistently. Director Lee emphasized, "We will firmly promote shareholder protection and the reform of listing systems," and urged, "Market participants, including corporations, who are both the subjects and beneficiaries of innovation, should show active roles and responsibilities."
On that day, KB Securities announced the operational process of the short selling balance management system. KB Securities will integrate the registration and approval of independent transaction units, responsible staff, and managed products through the balance management system. It will calculate available balance for selling in real time, reflecting internal borrowing transactions throughout the organization as well as individual independent transaction units. It blocks cases where the available selling quantity is less than the order quantity for selling based on real-time stock status.
NextTrade explained the necessity of an alternative trading platform. They noted, "Our stock market has demonstrated quantitative growth with an expansion in stock investment scale, an increase in the number of investors, and diversification of securities products," adding, "The single exchange operation has not met investor needs in terms of transaction time and expenses." NextTrade highlighted its competitive advantages, including ▲ 12 hours of competitive trading daily ▲ quick execution speed ▲ various order types ▲ and low fees.
At the meeting, Kiwoom Securities revealed its operational direction for the order distribution system in multiple markets following the launch of NextTrade. Kiwoom Securities plans to continuously analyze where trades can be executed under favorable conditions for investors between the two markets.
Kiwoom Securities will select the exchange based on the total amount for existing order executions and based on the execution possibility for new order formations. If the judgment results are the same between the two exchanges, they decided to send the order to the Korea Exchange.