Korea short-selling ban leaves dealers reeling

asia markets

South Korea's Financial Services Commission (FSC) implemented a stock short-selling ban yesterday on all listed stocks traded in the country. The move was aimed at calming volatile and anxious equity markets but also forced major dealers holding stock inventories to jettison their surplus of positions, resulting in substantial losses.

The action by the Korean authorities followed pandemonium in world markets this week after US sovereign debt was downgraded to AA+ from AAA by rating agency Standa