On Sep. 19, SK FIA revised rules for repayment of loaned securities.
SK FIA revised Best practices for financial investment companies' securities lending.
Follows SK FSC, FSS Jun. 2024 launched short sale reform measures, see #215738.
Overview of Revisions
Stipulate the repayment period for listed securities lending transactions for the purpose of short sales mediated by financial investment companies within 90 days.
The total repayment period, including period extension, shall not exceed 12 months.
Early redemption before expiry of transactions may be requested; where lenders request early redemption, borrowers must deliver securities within 3 business days.
Effectiveness
The revised best practices will be effective from Nov. 1, 2024.
