[Infostock Daily= Choi Jae-young, senior reporter] The Financial Services Commission has banned short selling for all listed stocks in the KOSPI, KOSDAQ and CONEX markets for six months starting on the 16th.
The Financial Services Commission held an interim financial committee on the 13th and voted to ban stock short selling for six months as a market stabilization measure.
“We took a market step to significantly strengthen the stock short selling overheating system on the 10th, but the stock price has continued to decline and we prohibit short selling in order to respond to the stock market,” said Eun Sung-soo, chairman of the finance committee.
This is the third time the Financial Services Commission has banned short selling altogether. It banned short selling during the global financial crisis in 2008 and the European fiscal crisis in 2011.
“We have set a six-month ban on stock short selling while looking at recent situations,” said Eun Sung-soo, chairman of the finance committee. “We will look at the market situation and consider whether to extend it.”
It also decided to curb the brokerage firm's margin call for six months.
Securities companies call the margin of the borrowers' stock collateral value falls below a certain percentage.
It is exempt from the obligation to maintain the credit mortgage ratio for the next six months.
senior reporter Choi Jae-young caelum@infostock.co.kr
