고빈도 알고리즘을 이용한 시세조종의 예방 및 제재의 실효성 제고를 위한 법적 개선방안

Abstract

Today, various transactions are being concluded using algorithms in the modern capital market around the world. However, high-frequency trading using algorithms has often occurred in the Korean market, disturbing the order of the capital market and causing enormous damage to many market participants. Despite this, the current Korean Capital Markets Act on the regulation of market price manipulation is not yet appropriate against this phenomenon. In order to prevent price manipulation using algorithms, it is necessary to introduce a ‘legal’ basis for supporting the price determination function of the market into the current Capital Markets Act. This includes specifying the types of [high-frequency] algorithmic transactions that are prohibited, establishing a device to support monitoring of algorithmic transactions, and imposing registration obligations on [high-frequency] algorithmic traders to select and manage them, thereby expanding the supervisors’ authority to intervene timely in the market. In addition, it is necessary to revise the law to effectively sanction those who attempt to manipulate prices through high-frequency trading using algorithms. Articles 176, 178, and 178-2 of the current Capital Markets Act, which require proof of ‘purpose’ (intent to mislead others) in order to punish criminally or impose penalty surcharge on offenders, are no longer serving its purpose. Article 443 of the Capital Market Act, which stipulates criminal penalties for offenders, and Article 429-2 of the Act, which stipulates the basis for imposing penalty surcharge, also require that sanctions be imposed only when the ‘amount of profit accrued/losses avoided by a violation’ can be calculated, but it lacks legitimacy, so urgent revision of the law is necessary. In particular, since algorithmic trading using generative AI capable of machine learning will become more common in the future, discussions on the obligation to establish internal control systems on high-frequency algorithmic traders should be held in parallel. Furthermore, as globalization progresses and each country’s markets become more closely connected, efforts should be made to improve the cooperative system among overseas supervisors and exchanges in order to effectively detect and investigate price manipulation activities of an extraterritorial nature.