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Financial authorities will operate a permanent surveillance system for abnormal transactions following the enforcement of the Virtual Asset (Coin) User Protection Act this month.
The Financial Supervisory Service announced on the 4th that it has prepared guidelines so that virtual asset exchanges can constantly monitor abnormal transactions.
The acts that the Financial Supervisory Service detects as abnormal transactions include the use of undisclosed information, market manipulation, and illegal transactions.
First, the guidelines require exchanges to establish a trading data accumulation system.
Previously, each exchange had different forms of accumulated data, but the guidelines required exchanges to prepare a unified trading data format to enable them to detect and detect abnormal transactions.
Accordingly, each exchange created a computer system that can check quotation information, trading order medium information, etc.
Additionally, the guidelines require exchanges to install an abnormal transaction detection system.
The Financial Supervisory Service expects that it will be able to filter out abnormal transactions through an detection model and quantitative indicators that benchmark the abnormal transaction detection standards of the Korea Exchange.
Extracted variables included price, trading volume changes, and trading type, and quantitative indicators included market price increase rate by period, disguised/actual trading, high-price purchase orders, and order participation rate.
Major exchanges have completed building systems in accordance with these standards.
In addition, an abnormal transaction review and suspicion notification system will also be established.
In order to assist in the psychological work to determine whether or not there are suspicions of unfair trading in the detected abnormal transactions, standards for psychological methods such as basic analysis of stocks, linkage analysis, trading pattern analysis, and stock/output analysis were presented, and a permanent surveillance organization was established at the exchange. .
Clear standards, such as unfair profits and transaction amounts, were also presented for matters notified to financial authorities or reported to investigative agencies.
An official from the Financial Supervisory Service explained, “The exchange will detect abnormal transactions through a regular surveillance system and detect suspicions of unfair transactions using sales data, account opening information, order media information, etc.”
