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Legal Briefing
System enhancement proposal to prevent dramatic market movement on option expiry
Practice Area: Corporate Financing
Sector: Investment Banking
Jurisdiction: South Korea
Published: 14 January 2011
Law Firm: Kim & Chang
Overview
On January 11, 2011, the Financial Services Commission, Financial Supervisory Service, Korea Exchange and Korea Financial Investment Association issued a joint press release announcing the system enhancement plan proposal prepared by the FSC to prevent the reoccurrence of drastic market movement similar to the incident on November 11, 2010.
The major points of the Enhancement Proposal are summarized below. The press release states that the plan is to implement a large portion of the Enhancement Proposal by amending the relevant KRX regulations in January. However, we understand that the relevant agencies, including the FSC, FSS, KRX and KOFIA, are currently reviewing the Enhancement Proposal and the actual scope of the Enhancement Proposal that will be implemented remains to be decided.
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