Seoul to allow individual investors to borrow stocks for 90 days for short sale

Choi Mira 2021. 9. 23. 15:18
글자크기 설정 파란원을 좌우로 움직이시면 글자크기가 변경 됩니다.

이 글자크기로 변경됩니다.

(예시) 가장 빠른 뉴스가 있고 다양한 정보, 쌍방향 소통이 숨쉬는 다음뉴스를 만나보세요. 다음뉴스는 국내외 주요이슈와 실시간 속보, 문화생활 및 다양한 분야의 뉴스를 입체적으로 전달하고 있습니다.

Individuals can borrow Korean stocks for short sale for 90 days, increased from 60 days, starting November, and can extend the loan upon expiry in new incentives to bring retailers closer to the complex investment activity.

The Financial Services Commission (FSC) announced Thursday that individual investors will have up to 90 days to borrow stocks for short sale starting November 1.

They will also be allowed to extend payback deadline for multiple times, the FSC said.

The rule revision is aimed at providing better access to short sale transactions to retail investors, according to the financial authority, as there has been an increasing number of amateur investors who use short position as their investment strategy to take advantage of stock price volatility.

The number of brokerage houses which offer stock lending service to individual investors will increase from the current 19 to 28 within the year.

The authority will also set up a real-time borrowed stock transactions monitoring system by the end of the year to enhance trading efficiency.

Since brokerages accommodating retailers to lend stocks increased to 19 from six from May 3, daily shorting by individual investors surged 41 percent to 11 billion won from the previous year. Retail share in short sale turnover edged to 1.9 percent from 1.2 percent in 2020.

Biggest shorted Korean stock during the period was Kakao that drew 2.1 trillion won in short account.

[¨Ï Maeil Business Newspaper &, All rights reserved]

Copyright © 매일경제 & 무단 전재, 재배포 및 AI학습 이용 금지

이 기사에 대해 어떻게 생각하시나요?