In today’s briefing:
- FSS Bans Arb in Local MM Books: Identifying Opportunities from Short-Term Inefficiencies
- Dongwon F&B: Delisting and Incorporation as a Wholly Owned Subsidiary of Dongwon Industries
FSS Bans Arb in Local MM Books: Identifying Opportunities from Short-Term Inefficiencies
- The FSS is banning arb trades under the MM book, requiring separate books for any arb positions to keep them distinct from MM flow.
- Most local shops lack the resources to set up a separate arb desk. Splitting teams, creating new workflows, and hiring extra staff isn’t feasible given their tight P&L.
- Building a tracker for MM dropouts could spot dislocations, as the crackdown creates short-term inefficiencies—if we’re dialed in, there’s alpha to be made.
Dongwon F&B: Delisting and Incorporation as a Wholly Owned Subsidiary of Dongwon Industries
- Dongwon Group’s decision to merge Dongwon F&B and Dongwon Industries into one company is a positive move.
- Dongwon F&B will be incorporated as a wholly-owned subsidiary of Dongwon Industries and will be delisted.
- Post stock swap between Dongwon Industries and Dongwon F&B, the surviving entity (Dongwon Industries) is a likely candidate for KOSPI 200 inclusion in 2H 2025/2026.
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