The Financial Services Commission (FSC) announced on March 12,
2012 that it will propose amendments to introduce a mandatory
reporting system for high volume short positions in line with
global standards adopted by the International Organization of
Securities Commissions (IOSCO). The FSC noted that by introducing
this reporting regime for large short positions, Korea will be
joining the global effort to expand the pool of information for
market supervision and to maintain stability of the financial
markets.
Under the new system, net open short positions exceeding a
certain threshold and subsequent changes to the size of previously
reported short positions would need to be reported to the FSC and
the Korea Exchange. The trigger level, frequency, and timing of
reports will be determined after further review by the regulators.
The FSC expects to implement the new reporting regime during 3Q
2012.
