고빈도매매의 규제동향 및 규제방안

Nowadays the competitions to invite investors are more intensifying among the global exchanges and/or alternative trading systems (ATSs). The more equipped the electronic trading systems of the global exchange are, the more invigorated the high frequency trading (HFT) has been recently through the world. On the other hand, unlike the past, most of global exchanges allow investors to directly access their trading systems without the brokers’ intervention by using the broker’s market participation ID, which means DMA. Moreover, many exchanges tend to provide co-location service and/or proximity service to the investors. As algorithm trading has been common, DMA has also been a worldwide trend; there is little reason to ban DMA, setting aside taking measures to control the risks on brokers and the related market. However, many countries are in the process of imposing prohibition on pure DMA (sponsored access) which means that the investors are not forced to make their orders validated in advance through the brokers’ system. Korea also bans pure DMA. However, this major trend doesn’t necessarily mean that the other type of DMA (traditional DMA/ narrow DMA) should also be forbidden. The Korea Exchange compels the brokers to input the bids and asks into the Exchange system only in the order in which they received. Therefore, there is no use exercising traditional DMA for the investors; the Korean Exchange’s market operating regulation is too strict to attract the global investors. Accordingly, Korea needs to lift the strict DMA regulations and to allow the brokers to provide the co-location service to investors. Alongside the future market invigoration allowing the traditional DMA, there remain some important tasks such as building effective system of validating the algorithms, monitoring the market price manipulation, and, to pursue effectively these goals, building closer cooperation between the Exchange and the financial supervisory authority.