JPMorgan, UBS, Nomura Face Korea Short-Selling Fines, Maeil Says.
South Korea’s financial regulator is imposing fines totaling 16 billion won ($11 million) on JPMorgan Chase & Co., Morgan Stanley, UBS Group AG and Nomura Holdings Inc. for allegedly violating the country’s rules on short-selling stocks.
South Korean authorities previously announced that they found 14 banks in breach of short-selling rules after launching an investigation in 2023, the news outlet reported earlier, citing an unidentified official. The penalties are expected to be finalized before a ban on short-selling is lifted next month. The ban was put in place a little more than a year ago to weed out improprieties.
Nomura is facing a fine of 9.8 billion won, while UBS and JPMorgan were ordered to pay 3.7 billion won and 1.4 billion in penalties respectively.
The regulatory action, if confirmed, would underscore Korea’s resolve to crack down on entities seen as violating short-selling rules, even as it prepares to re-introduce the trading technique. The practice, which is unpopular with retail investors, has been criticized for causing excessive market volatility.
Source: FINANCE.YAHOO