INTERNATIONAL: SZSE and KRX Sign an MoU on Cooperation in Market Regulation and Research

Monday September 9 2019

On 3^rd September 2019, the Shenzhen Stock Exchange (SZSE) and the Korea Exchange (KRX) signed a memorandum of understanding (MoU) on cooperation in market regulation and research for the establishment of a regular exchange and cooperation mechanism on market regulation, so as to promote communication on a regular basis. The two parties also jointly held the first SZSE-KRX market regulation seminar, during which in-depth discussions were made on topics such as improving front-line regulation efficiency and forestalling and resolving market risks, and experience were shared on refining basic systems, improving trading regulation, giving play to the synergy of members and advancing technology-based regulation.

The MoU on cooperation in market regulation and research is an important supplement to the foregoing MoU and a beneficial attempt of SZSE in deepening international cooperation on front-line regulation. According to the supplementary MoU, the two exchanges will establish a regular market regulation and research mechanism, discuss in depth hot topics on trading regulation, strengthen mutual learning and reference of experience in trading regulation and work together to improve market regulation.

The seminar, as another innovative move in the cooperation between the two parties, furthered exchanges on market regulation between the two. During the seminar, SZSE and KRX had thorough discussions on topics that both parties were concerned with such as prevention and control of speculation risk of theme stocks and concept stocks and discovery and handling of insider trading. As both exchanges have a market investor structure featuring small and medium investors, it is of great significance to maintain market order, prevent and control risks and protect investors’ legitimate rights and interests. In recent years, the two exchanges have, by making full use of technological advantages such as big data and artificial intelligence (AI), enhanced trading regulation in the monitoring of theme stocks and concept stocks and the investigation and handling of insider trading, through which they have developed relevant mechanisms, measures and practices with their own characteristics. The two exchanges will continue to sum up relevant experience, improve existing communication and cooperation mechanisms and carry out communication and cooperation on an institutionalized and regular basis.

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