On September 3, 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. Yang Zhihua, Chairman of Supervisory Board of SZSE, and Song Jun Sang, Chairman of Market Oversight Commission of KRX, attended the signing ceremony and the seminar.
For a long time, SZSE and KRX have maintained a good cooperation relationship. Since an MoU was signed in October 2014, the two parties have carried out extensive cooperation in information sharing, experience exchange, index and relevant product development, etc. 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.
SZSE will, under the leadership of the China Securities Regulatory Commission, stick to the principle of pursuing market-based and internationalized operations under the rule of law, perform the statutory duties as a stock exchange, strengthen experience sharing and communication with foreign exchanges, and learn from the best international practices. Moreover, it will refine trading regulation means, guard the bottom line of front-line regulation, enhance regulation transparency and efficiency, work solidly to maintain market trading order and provide regulatory guarantee for building a capital market that is law-based, transparent, open, vibrant and resilient.