Currency dealers work at the dealing room of Hana Bank in Seoul on Feb. 3, 2021. (Yonhap)
SEOUL, Oct. 26 (Korea Bizwire) — The Korea Exchange (KRX) on Tuesday issued an advance notice of a revision to its operational rules with respect to the establishment of a comprehensive management system to ensure efficient oversight of algorithm trading.
Under the revision that is expected to take effect in January, any investors who want to use high-speed algorithm trading in stock or derivative product markets should register in advance.
The bourse operator will monitor algorithm trading by issuing identification codes to algorithm traders.
To prevent mishaps with stock orders, the KRX will concretize risk management obligations for high-speed algorithm traders, while providing them with risk management solutions such as mass order cancellation and cross-trading prevention.
According to the KRX, the number of accounts with a daily order volume of more than 20,000 for the benchmark Korea Composite Stock Price Index (KOSPI), tech-heavy Korean Securities Dealers Automated Quotations (KOSDAQ) and derivatives markets more than doubled last year to 388, 231, and 252, respectively, from 111, 32 and 87 in 2016.
J. S. Shin (js_shin@koreabizwire.com)
