South Korea Keeps Tabs On Illegal Short Trading

Seoul: The government will publish detailed guidelines on stock short selling this week to help prevent people unintentionally engaging in illegal trading, the financial regulator said on Wednesday. The guidelines will be made public on Thursday, while an English-version of the how-to instructions will be available from next month, according to the Financial Supervisory Service (FSS).

“There has been a need to remove uncertainties over how the financial authorities interpret and apply regulations on stock short selling, and to stipulate what may constitute as naked short selling,” it said of reasons for the guidelines, reports Yonhap news agency. There also existed a need for guidelines in English, the FSS noted, “since the financial authorities had only provided information in Korean.”