Two former subsidiaries of Credit Suisse were fined by South Korea’s financial regulatory authority for violations related to illegal short selling.
The Financial Services Commission (FSC) imposed fines of $121,700 and $73,000 on Credit Suisse AG (now UBS AG) and Credit Suisse Singapore Ltd respectively.
Additionally, it was established that between January 9, 2021, and X, 2022, Credit Suisse engaged in illegal “naked” short selling amounting to $434,000. South Korean capital market law prohibits naked short selling, which involves selling stocks without borrowing or verifying the ability to borrow them.
Read more:
The upcoming FOMC meeting — What should we know?
Credit Suisse Singapore Ltd also conducted similar transactions worth $X million between April 25, 2021, and X, 2022.
To bolster systems against illicit trading practices in the future, South Korea has extended the ban on short selling across the entire stock market until the first quarter of 2025.
