Korea NSDS (Naked Short Sell Detection System) and new Short sell guidelines will require Short Sell ID to be tagged with the order to KRX (exchange).
Is there any recommendation on the FIX tag to be used for tagging Short Sell ID with the order?
Can you elaborate on what KRX means by “short sell ID”? Is this the ID that the stock is located for the short?
To prevent naked short sell in Korea, regulator have announced number of measures under NSDS (Naked Short Sell detection System). One of the change being proposed is to assign ‘Short Sell ID’ at Investor or aggregation Unit level as applicable. Draft proposal is to tag short sell order id on all buy/sell/short sell combination of alphabet letters + numbers. All orders would need to be tagged with Short Sell ID to exchange.
Is this an ID to identify the investor (so to speak) for market surveillance reasons? Do you have any link to the draft proposal that is in English that might explain more so we can see what is appropriate to meet requirements, and if nothing is available in the standard we’ll get the APAC committee to look into this quickly.
I cannot paste the link but Google search FSC NSDS for public available information. Snippet below:
In addition, all sell orders placed by institutional investors will be effectively monitored by a central monitoring system (NSDS: Naked Short-selling Detection System) set up at the Korea Exchange (KRX). The NSDS will receive information about the status of stock balance and over-the-counter (OTC) transactions from institutional investors and compare it with their order history stored at the KRX to monitor and ensure detection of naked short selling activities within three days of orders being placed. The KRX is currently working on developing the NSDS and plans to complete it by the end of March 2025.
I found this press release: https://www.fsc.go.kr/eng/pr010101/82464
I’ll bring this up with the APAC committee
The FIX Global Technical Committee (GTC) have preliminarily approved the Korea Short Selling Registration Number proposal, (attached).
FIX Protocol Gap Analysis- Korea Short Selling Registration Number v0.2…pdf (1016.9 KB)
There follows a two week public comment period before final confirmation of the new values.
However, the GTC have pre-assigned the following values below, for your immediate reference:
PartyIDSource(447) code set:
V = Korea Short Selling Registration Number
A tag number in the 8000-8499 range reserved for regulatory purpose:
8030 = KRShortSellRegNum
Description: String datatype. Same as PartyID(448) with PartyIDSource(447)=V (Korea Short Selling Registration Number). To be used by implementations that cannot accommodate repeating groups.
Any immediate points, questions or feedback (as we go through the Public Consultation period) welcomed.
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The FIX Global Technical Committee (GTC) have published the Korea Short Selling Registration Number proposal, FIX Protocol Gap Analysis- Korea Short Selling Registration Number v0.2…pdf (1016.9 KB), with the official confirmation of tag 8030 published on User Defined Fields – Excel – FIX Trading Community and publication of the Extension Pack EP296 (EP296 – Korea Short Selling Registration Number – FIX Trading Community) with the new PartyIDSource value.