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Investigations showed the securities firm engaged in 6,220 cases of high-frequency trading on behalf of Citadel Securities, from October 2017 to May 2018.
Merrill Lynch assumed transactions scaling 80 trillion won from Citadel and the KRX estimated the latter made over 220 billion won in profits.
The securities firm used algorithm-based trading through direct market access. Direct market access refers to access to the electronic facilities that allow daily securities transactions.
High-frequency trading practices refers to the use of sophisticated technological tools and computer algorithms to rapidly trade securities. The practice gives an unfair advantage to large firms against smaller institutions and investors and contributes to market volatility, the KRX said.