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Leading the Way Global Securities Finance News and Commentary Home News Features Interviews Magazine Archive Symposium Industry Awards Subscribe ⚲ Search Leading the Way Global Securities Finance News and Commentary Go → ⨂ Close ≔ Menu Leading the Way Global Securities Finance News and Commentary Menu Subscribe ⨂ Close News Latest news Industry Technology People moves Regulation Buy side Repo Derivatives ESG Magazine Archive Features Interviews Country profiles Directory All providers Asset management Associations Consultants Securities lending Technology Events Events Symposiums Boston Symposium London Symposium Awards Industry Excellence Awards This years winners Image Gallery Multimedia Podcasts Videos Follow us LinkedIn X Facebook Leading the Way Global Securities Finance News and Commentary News by section Subscribe ⨂ Close Latest news Industry Technology People moves Regulation Buy side Repo Derivatives ESG 1. Home → Regulation news → 2. Korea approves new short position balance rules Regulation news MORE REGULATION NEWS US COURT VACATES SEC DEALER RULE 22 November 2024 US Reporter: Daniel Tison ESMA FINALISES TECHNICAL ADVICE ON CSDR PENALTY MECHANISM 20 November 2024 EU Reporter: Daniel Tison ESMA PROPOSES ‘COORDINATED’ EU MOVE TO T+1 BY OCTOBER 2027 18 November 2024 EU Reporter: Daniel Tison DORA: ESAS PUBLISH DECISION ON REPORTING RULES FOR CRITICAL ICT PROVIDERS 18 November 2024 EU Reporter: Daniel Tison FINRA PROPOSES AMENDMENTS TO RULE 6500 SERIES 18 November 2024 US Reporter: Carmella Haswell SF SYMPOSIUM: AUTOMATION IS KEY, BUT T+1 CHALLENGES REMAIN 12 November 2024 UK Reporter: Jack McRae SEC POSTPONES FINRA’S RULE 6500 SLATE AGAIN 29 October 2024 US Reporter: Carmella Haswell SEC ADOPTS NEW RULE FOR COVERED CLEARING AGENCIES 28 October 2024 US Reporter: Carmella Haswell KOREA APPROVES NEW SHORT POSITION BALANCE RULES 06 November 2024 South Korea Reporter: Carmella Haswell Image: kampon/stock.adobe.com Investors will become subject to new disclosure requirements regarding their net short position balances from 1 December. This news follows the Korean government’s approval of a revision bill for the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA). According to the Financial Services Commission (FSC), this revision, which intends to strengthen the disclosure requirement on investors’ net short position balance, is part of the comprehensive short sale reform measures announced on 13 June 2024. Pursuant to the revised Enforcement Decree, investors with a net short position balance of 0.01 per cent — excluding those with less than 100 million South Korean won (approximately US$71,700) — or KRW1 billion or more of total issuance volume will be newly required to disclose their net short position balances. Previously, only those with a net short position balance of 0.5 per cent or more were subject to the disclosure requirement. Investors that will newly become subject to the disclosure requirement will begin to disclose their net short position balances from 4 December. The government and relevant institutions have been working on comprehensive short sale reform measures in order to address the problem of illegal and unfair trading practices, says the FSC. Some of the reform agendas requiring no revision to legislation have already been put into place. On 27 September, the supervisory regulation on financial investment businesses was revised to bring down the cash collateral ratio of retail investors when borrowing stocks to 105 per cent, which is the same level in place for institutional investors. The reduced cash collateral ratio for retail investors is to become effective from 31 March 2025. For market makers and liquidity providers, their stock borrowing period has already been limited to a maximum of 12 months, with 90-day extensions each time through system upgrades made at the securities lending institutions (Korea Securities Depository and Korea Securities Finance Corporation) from 1 November. Additional announcements for regulatory revisions will be made within the month regarding other reform areas, such as the establishment of an electronic short sale processing and monitoring system, internal control standards, securities companies’ verification duty, and the limit on institutional investors’ stock borrowing period. The FSC adds that the government and relevant institutions will “spare no effort” in pursuing follow-up measures and establishing an electronic short sale processing and monitoring system to make sure that short sale transactions can resume as planned from the end of March next year 2025. ← Previous regulation article SF Symposium: Automation is key, but T+1 challenges remain Next regulation article → SEC postpones FINRA’s Rule 6500 SLATE again NO FEE, NO RISK 100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times Subscribe today Knowledge base Explore our extensive directory to find all the essential contacts you need Visit our directory → Glossary terms in this article → Collateral → Liquidity → Short Sale Discover definitions, explanations and related news articles in our glossary Visit our glossary → Get in touch Home Contact us LinkedIn X Facebook RSS feed Privacy policy News Industry Technology People moves Regulation Buy side Repo Derivatives Magazine Archive Features Interviews Country profiles Editor's picks More sections Directory Events Podcasts Videos Boston Symposium London Symposium Industry Excellence Awards Black Knight Media Black Knight Media Securities Finance Times Asset Servicing Times Captive Insurance Times BKM Creative -------------------------------------------------------------------------------- © 2010-2024 Black Knight Media Ltd. 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