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New Rules to Boost Transparency in CFD Transactions

New Rules to Boost Transparency in CFD Transactions
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Korean stock market s turnover falls sharply in May amid Ponzi scheme

Turnover of Korea s main and secondary bourses dropped sharply last month as investor sentiment was dampened by a recent Ponzi scheme that has rocked the local financial market, data showed Tuesday.

CFD rules tightened to boost trading transparency

The government has overhauled regulations on trading of contracts of differences (CFDs), a highly leveraged derivative product tied to the purchase and sale price differences of equities. The move is aimed at strengthening requirements for trading to increase transparency and protect investors in order to prevent major stock price manipulation scams based on derivative trading, as seen in a recent high-profile stock manipulation case involving eight local stocks, which wreaked havoc on hundreds of retail investors.

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