Prevention of Another ‘Codes Combine’
The Korea Exchange is planning to visit FTSE Group in London this month in order to discuss the establishment of a cooperative system for real-time information and data sharing regarding enterprises listed on the South Korean stock market.
The idea is to prevent scandals similar to the recent one associated with Codes Combine based on timely provision of information and data. The company, which has remained in the red for four years in a row with a very small number of traded stocks, recently jolted the domestic stock market after its incorporation into the global index and a sharp increase in stock price.
“The incorporation of Codes Combine, an administrative issue, into the FTSE SmallCap Index was because of the lack of information,” the Korea Exchange explained on April 7, adding, “In this regard, we are going to set up an information sharing system so that global index providers can be better informed of listed domestic companies.”
The FTSE Index, announced by the FTSE International Group founded in 1995 by the Financial Times and the London Stock Exchange, constitutes the two most-renowned stock indices of the world with the MSCI Index. Companies newly included in and excluded from the index are announced every March and September. After its visit to FTSE, the Korea Exchange is going to meet with MSCI to discuss the same issue.