3.Perspectives of trade practice surveillance - Self-regulatory

The Exchange monitors trade practices for any unfair trading using a market surveillance system as well as dedicated staff. In particular, the Exchange closely watches the following acts as potential indications of unfair trading, etc. that may be subject to an investigation through members.

  1. Placement or cancellation of an excessive quantity/number of orders in consideration of market conditions at the time
    Placement or cancellation of an excessive quantity/number of orders in consideration of market conditions at the time is subject to an investigation as it is likely to have a significant impact on the market and may cause a market disruption.
  2. Cancellation of orders in a short period of time after the order entry
    The practice of cancelling orders in a short period of time after order entry is subject to investigation as said orders may have never been intended to be executed.
  3. Transactions in which a person is both buyer and seller either independently or jointly with another person
    Transactions in which one becomes both the seller and the buyer, either independently or in collaboration with other persons, are subject to investigation as it could be suspected that they were intended for a purpose other than making trades (price manipulation and/or faking to be thriving).
  4. Placing Orders at Price Levels Significantly Deviating from Market Conditions at the time
    Placing orders at price levels significantly deviating from the market conditions at the time is subject to investigation as it could result in significant price movements and/or cause unnecessarily triggers of Circuit Breakers, leading to market disruption.
  5. Dramatic Increase of Trading Volume and/or Participation Ratio
    A drastic increase of trading volume and/or participation ratio of a certain member in comparison with past trading records could be subject to investigation.
  6. Trade Participation during Price Movements
    When there is significant price movements in consideration of the market conditions at the time, members related to these transactions may be subject to investigation.
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