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[Apha Biz=(Chicago) Reporter Paul Lee] It has been confirmed that four securities firms, Mirae Asset Securities, Korea Investment & Securities, NH Investment & Securities and KB Securities, have been asked by the FSS to strengthen the management of their foreign exchange soundness system.
According to the financial investment industry on the 16th, the Financial Supervisory Service notified Mirae Asset Securities, Korea Investment & Securities, NH Investment & Securities and KB Securities of one management precaution on the 5th.
The Financial Supervisory Service conducted inspections of major securities firms from June to July on their foreign exchange soundness management systems. This is because international financial market instability has continued amid the recent expansion of securities firms' foreign exchange volume.
In particular, as some revisions to the Enforcement Decree of the Foreign Exchange Transactions Act have been approved since July, the law on the Capital Market and Financial Investment Business Act has allowed securities and financial firms to participate in the foreign exchange swap market, making risk management more important.
As a result of the Financial Supervisory Service inspection, the four securities firms were required to improve foreign currency liquidity management infrastructure, improve means to manage foreign currency exposure, improve means to manage foreign currency liquidity, prepare measures to manage overseas risks and overhaul the board reporting system on the status of foreign exchange.
The Financial Supervisory Service said Korea Investment & Securities, NH Investment & Securities and KB Securities also needed to improve the contents.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
