South Korean regulators are inspecting short-selling transactions at global banks including Morgan Stanley.
The Financial Supervisory Service (FSS) has launched an inspection into short-selling transactions, according to a «Reuters» report citing an official, starting with the Seoul branch of Morgan Stanley & Co International.
The inspection is part of efforts to strengthen monitoring of short selling and is not based on any specific suspicion or allegation, the official added. It will most likely be focused on large players with no timeframe yet to be set.
BofAML Too
According to Korea Exchange data, the local branches of various global banks are among the top players in equity short-selling including Credit Suisse, Goldman Sachs and UBS.
Separately, a «Bloomberg» report citing unnamed sources said that Bank of America Merrill Lynch would also be part of the inspection, specifically to examine how they conduct stock short sales.
