Two former subsidiaries of Credit Suisse were fined by South Korea’s financial regulator for violations related to short selling. The Financial Services Commission (FSC) imposed fines of $12.17 million on Credit Suisse AG (now UBS AG) and $7.3 million on Credit Suisse Singapore Ltd.
Additionally, it was established that between April 7, 2021, and June 9, 2022, Credit Suisse conducted illegal “naked” short sales amounting to $43.4 million. South Korea’s Capital Markets Act prohibits naked short sales, where an investor sells shares without borrowing them or ensuring they can be borrowed.
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Similar transactions totaling $25.4 million were also conducted by Credit Suisse Singapore Limited between November 29, 2021, and June 9, 2022.
To promote a stable system against illegal trading practices in the future, South Korea extended the ban on short selling of stocks across the market until the first quarter of 2025.
