The Korea Exchange’s Market Oversight Commission has upgraded its market surveillance system to prevent what it calls “new types of unfair trading practices”.

The upgraded system includes an improved unfair trading detection model, automated analysis of accounts suspected of being involved in unfair trading and a visual analysis system, which surveillance officers may use to identify abnormal trading patterns.

It uses time series analysis and tries to eliminate over-detection of abnormal trading during certain times of the day.

Detection criteria are subdivided based on the trading pattern and a score is assigned according to the degree of unfair trading practice per criterion.

If the accumulated score reaches a certain level, the trade or account is identified as suspicious.

Visual analysis of quotes and matching processes is possible.

By developing general screens for analysis, which are used by market surveillance officers, the exchange believes it can improve the accuracy of identifying unfair trading practices and reduce the time spent for analysis.