PSE drafts new market-making standards

MANILA, Philippines – The Philippine Stock Exchange (PSE) is seeking comments on a proposed market-making rule changes aimed at boosting liquidity across listed securities and investment products.

In a memorandum signed by PSE president and CEO Ramon Monzon, the proposed rules aim to enhance market liquidity through a uniform market-making framework while providing tailored requirements for specific products.

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“The proposed rules aim to enhance market liquidity by introducing a general framework applied uniformly to all market-making activities on the Exchange,” the regulator said.

The draft rules cover market-making activities on the PSE and introduce product-specific frameworks for Exchange-Traded Funds (ETFs) and Global Philippine Depositary Receipts (GPDRs).

Under the proposal, market makers must meet accreditation standards and maintain minimum quote sizes, bid-ask spreads, and market presence during trading hours.

In addition, the PSE said the measures will help ensure the continuous provision of market liquidity.

The draft rules would also establish eligibility requirements for market makers, including registration as a broker-dealer, admission as a trading participant of the exchange and at least P100 million in unimpaired paid-up capital.

Moreover, the exchange is proposing incentives such as fee discounts, connectivity support and other non-cash benefits for compliant market makers.

The exchange said the amendments aim to support more orderly trading and improve liquidity for securities and other financial products listed on the local bourse. /pai INQ