On Nov. 5, SK FSC said revisions re balance disclosures were passed.
SK FSC said revisions to Enforcement decree of the capital markets act were approved at the cabinet meeting, for strengthened disclosures on net short position balance.
Follows SK FSC Jun. 2024 proposed revisions re stock lending collateral, see #216545.
Also follows SK FSC Sep. 2024 revisions re short sales were approved, see #227780.
Overview of Revisions
From Dec. 1, 2024, investors with net short position balance of 0.01% (excluding less than KRW 100mn) or KRW 1bn or more of total issuance shall disclose their balance.
Instead of requiring disclosures by those with a net short position balance of 0.5%+.
Investors that will be newly subject to the disclosure requirement shall disclose their net short position balance from Dec. 4, 2024, 2nd business day from the effectiveness.
Next Step
Additional announcements for regulatory revisions will be made in Nov. 2024, re other short sale reform areas, i.e., the establishment of an electronic short sale processing and monitoring system, internal control standards, securities houses’ verification duty.
In addition, the limit on institutional investors’ stock borrowing period, as a follow-up to the passage of revisions to the Capital markets act on Sep. 26, 2024.
SK GVT and relevant institutions will spare no effort in implementing follow-up measures and establishing an electronic short sale processing and monitoring system.
In order to ensure that short sale transactions can be resumed from end-Mar. 2025.
Regulators
SK FSC
Entity Types
B/D; Exch; Inv Co
Reference
Dec, Mt, PR, 11/5/2024; Dec 34840, 8/13/2024; Law 20305, 2/13/2024;
