Financial Services Commission also said on Wednesday it notified Deutsche Bank AG that the regulator is deliberating on potential sanctions against the bank’s unit for their involvement in market’s sharp fall.
Media reports also said regulators were planning to take the German bank and five employees of its Korean and Hon Kong units to the prosecutions over possible illegal trades that may be linked to a near 3 percent plunge in the stock market at the close of trading on Nov. 11.
“Regulators plan to discuss the six-month suspension of some operations in Korea at their meeting on Thursday,” a regulatory source told Reuters.
According to reports, South Korea’s Financial Services Commission and Financial Supervisory Service said in a joint statement that they have yet to decide whether to penalize Deutsche Bank, but they had informed the bank of their investigation results so that it can prepare its defense.
Record foreign selling on Nov.11, including a 2.3 trillion won ($2.1 billion) sale from Deutsche accounts minutes before the market closed, led to a 53-point plunge in the KOSPI amid options expiry.
Media reports said Deutsche Bank had garnered profits of about 40~50 billion won ($36~46$ million) from put-option transactions just before the massive stock sell-off, which caused the market to plunge.
According to media reports, Deutsche Bank is denying the allegations and the issue may eventually go to court for a final verdict.
In market manipulation cases like these, the FSS must submit its findings to the Securities and Futures Commission (SFC), a body within the FSC, for a ruling. The SFC, chaired by FSC Vice chairman, has the final say on whether any sanctions will be handled out.
The SFC has a meeting scheduled on Feb. 23, but the FSC said it isn’t clear yet whether the commission will make a final decision for sanction against Deutsche Bank at that time.
(아주경제 송지영 기자)
reporter
Park Sae-jin
swatchsjp@ajunews.com