Lynn Martin, president of the New York Stock Exchange (NYSE), introduced the NYSE's designated market maker (DMM) system and longer trading hours as ways to boost the stability of Korea's stock market amid recent volatility.

Lynn Martin, president of the New York Stock Exchange, "South Korea's capital market" (Seoul=Yonhap) By Bae Jae-man — Lynn Martin, president of the NYSE Group, delivers a keynote address at a seminar on the 10th at the National Assembly Members' Office Building hosted by Democratic Party of Korea lawmaker Kim Nam-joon, discussing ways to advance South Korea's capital market and enhance global competitiveness. /Courtesy of Yonhap News.

On the 10th, Martin attended a seminar at the National Assembly hosted by Kim Nam-joon of the Democratic Party of Korea and said, "What has maintained investors' trust is the institutional framework underpinning the market and the quality of investor protection," and stated accordingly. The event was attended by Jo Seoung-lae, Chairperson of the National Assembly Planning and Finance Committee, Lee Kwang-jae, Chairperson of the Special Committee on Budget & Accounts, and Oh Ki-hyeong, secretary of the Planning and Finance Committee.

Martin introduced the DMM as a core market stability mechanism at the NYSE. DMMs are assigned to specific issues to continuously post bid-ask quotes and supply liquidity. Martin said, "The New York Stock Exchange assigns designated market makers," adding, "They operate transactions efficiently and provide better bid-ask spreads throughout the day." She continued, "With these efforts, volatility was 40% lower and bid-ask spreads were 60% narrower."

Longer trading hours were also presented as a response to market volatility. Martin said, "The New York Stock Exchange was the first among U.S. exchange operators to receive approval from the U.S. Securities and Exchange Commission (SEC) to extend trading hours," adding, "In the second half of this year, we will further advance the industry by expanding trading hours." The idea is that extending trading hours would give investors time to respond to major policies and issues arising in overseas markets, allowing information to be reflected in prices more steadily.

She also expressed expectations for the growth potential of Korea's capital market. She added, "(Korea's capital market) has built an economy with the sophistication, scale, and determination to compete with the world's leading capital markets," and "What is done here at the National Assembly will determine how quickly and fully that potential is realized."

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