The market-making function to help smooth trading in the stock market is expected to be suspended for the time being in relation to the financial authorities’ policy on fines.
The Korea Exchange (KRX) announced on the 9th that it has decided to apply for exemption from market-making obligations for 14 securities companies designated as stock market makers.
If the securities companies apply for exemption by the 10th, they do not have to perform the market creation obligation until the time when the exchange announces it separately.
Previously, the Financial Supervisory Service notified nine domestic and foreign securities companies, including Mirae Asset Securities, Hanwha Investment & Securities, Shinhan Financial Investment, Korea Investment & Securities, Shinyoung Securities, and Bukuk Securities, to impose fines ranging from 1 billion won to 8 billion won on charges of market disturbance. .
Accordingly, it is highly likely that the majority of market maker securities companies will apply for exemption from obligations, and in this case, the market maker function will cease.
The market maker system refers to a system that provides liquidity through securities companies so that low-liquidity stocks can be traded smoothly.
Securities companies that have signed a contract with the Korea Exchange play a role in creating a market by submitting bids and bids to the stocks under the contract on a regular basis.
/yunhap news
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