Disturbs Stock Market with High-frequency Algorithm Trading
The Securities and Futures Commission under the Financial Services Commission has decided to impose a penalty of 11.88 billion won on U.S.-based Citadel Securities for disrupting the Korean stock market order.
The commission has found that the brokerage disturbed the market in a total of 6,796 trading sections for 264 Korean stocks from October 2017 to May 2018.
According to the commission, the U.S. company disrupted the market order with high-frequency algorithm trading. It distorted stock prices with artificial factors, such as orders on the condition of "immediate or cancel" and by filling gaps in bid prices.
Citadel Securities was also fined about 1.1 billion won for violating regulations on short selling.
The brokerage issued a statement to refute the charges. "We are doing everything in our power to comply with all relevant laws, regulations and regulations in a region in which we engage in trading activities. We have thoroughly abided by Korean law and international norms,” it said.