S. Korea to hold session to explain alternative trading system requirements

SEOUL– South Korea’s financial regulator said it will hold a session to explain requirements and other guidelines necessary to launch an alternative trading system (ATS) for securities.

The session scheduled for Nov. 25 is part of efforts to introduce an ATS that is expected to intensify competition with the main bourse operator, the Korea Exchange (KRX), according to the Financial Services Commission (FSC).

An ATS is a trading platform that will match buyers and sellers of securities but without having authority over listing and market oversight roles that the KRX plays.

Its introduction is expected to increase competition with the KRX and result in expanding the volume of transactions, reducing costs for customers, improving services and overall market efficiency.

In the United States, 58 ATSs were in operation as of end-2021, handling about 10 percent of total stock transactions, the FSC said.

The Seoul government has made efforts to allow the launch of an ATS since revising a capital market law in August 2013. Local brokerages aim to launch the operation of an ATS in 2024.

Source: Yonhap News Agency

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