Hana Financial Investment barred from US trading
The Chicago Mercantile Exchange (CME) said Wednesday it will suspend trading through Hana Financial Investment for 60 days. The brokerages customers won’t be able to trade overseas futures or options at the CME for about two months.
According to the CME, Wednesday, the decision is attributed to Hana Financial Investment’s insincere response to customer requests for information disclosure.
“Under related laws in Korea, it is mandatory to get a customer’s agreement for a disclosure,” said a Hana Financial Investment official.
“Hana Financial Investment did not provide necessary information with customers who did not agree with the provision. The company will do its best to settle the issue with the CME.”
Hana Financial Investment also notified its customers that they won’t be able to trade CME futures and options via the brokerage’s home and mobile trading systems. Currently, customers are only allowed to sell CME futures and options via telephone, it added.
“CME announced its decision around 6:30 a.m. We immediately informed our customers about the exchange’s decision at 7:00 a.m.,” the official said.
“We are doing our utmost to solve the problem as soon as possible. For those customers who sustain damages due to the issue, Hana Financial Investment will do all it can to compensate them for their losses.”
The CME is an American financial exchange that owns and operates derivates and futures in Chicago and New York. It has exchange facilities in London, using an online platform.
The CME also owns the Dow Jones stock and financial indexes, and its exchange-traded derivative contracts include futures and options based on interest rates, equity, foreign exchange and energy. London-based The Economists once described the CME as “the biggest financial exchange you have never heard of.”
Hana Financial Investment CEO Lee Jin-koo was appointed to the post in March 2016, after serving in various financial posts, mostly at Shinhan Investment Corp.
Lee is said to have played an important role when Shinhan Investment Corp introduced the Shinhan Private Wealth Management (PWM) centers, the nation’s first joint operation between bank and brokerage, in 2011.
He has also attempted similar models since he started serving at Hana Financial Investment as CEO in 2016. Lee was reappointed to the post in March.