South Korea Fines BNP, HSBC $20 Million for Naked Short Selling
- FSC says two global banks intentionally breached rules
- Regulators earlier fined three unnamed global hedge funds
South Korea has decided to impose a total fine of 26.5 billion won ($20.4 million) on BNP Paribas SA, its domestic brokerage unit and HSBC Holdings Plc for naked short-selling, according to a person familiar with the matter.
BNP Paribas was ordered to pay 11 billion won for naked short-selling, which is illegal in South Korea, while its local brokerage unit was penalized 8 billion won, according to the person, who requested anonymity discussing private matters. HSBC was fined 7.5 billion won for naked short-selling, the person said.