PSE eyes market-making rules overhaul

MANILA, Philippines – The Philippine Stock Exchange (PSE) is seeking comments from investors and market participants on a proposed overhaul of its market-making rules, part of efforts to improve liquidity and trading activity in the local bourse.

According to the 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.

READ: PSE eyes relaxed IPO float rules to attract big listings

The exchange invited interested parties to submit feedback on proposed amendments to the PSE Market Making Rules until June 23. Comments may be sent to the Office of the General Counsel.

“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.

It also contains tailored operational rules for specific products such as Exchange-Traded Funds (ETFs) and Global Philippine Depositary Receipts (GPDRs).

Under the draft rules, market makers would be required to meet accreditation standards and comply with obligations covering maximum bid-ask spreads, minimum quote sizes and required market presence during trading hours.

The exchange defines market making as the continuous provision of liquidity through simultaneous buy and sell quotations executed in accordance with exchange rules and applicable regulations.

To qualify as a market maker, applicants must be registered broker-dealers, trading participants of the exchange and possess at least P100 million in unimpaired paid-up capital.

If adopted, the new rules would replace the current market-making framework and establish a more structured system governing liquidity providers across various securities traded on the exchange. INQ