The Rwanda Capital Markets Authority, working with the National Bank of Rwanda, the Ministry of Finance and Economic Planning and the Rwanda Stock Exchange, has published a draft framework for designated market makers in government securities. The proposed code of conduct, guidelines and market making agreement would establish a one-year pilot intended to improve secondary market liquidity, price discovery and trading efficiency. Mandatory market making would initially cover designated three-year, 10-year and 15-year on-the-run Treasury bonds. Eligible institutions would need a valid dealership license, sufficient financial and operational resources, qualified staff, trading and settlement systems, and effective governance and risk controls. The draft agreement sets minimum financial and operational capital at RWF 500 million for banks and RWF 100 million for brokers. Designated firms would provide continuous firm two-way quotes within prescribed spread, size and trading-hour parameters, participate in primary auctions and meet settlement, reporting and market conduct requirements. The draft prohibits manipulation, collusion, insider dealing and misleading quotes, with sanctions potentially including restrictions, suspension or withdrawal of market maker status. The National Bank of Rwanda would designate market makers, select eligible securities, sign the agreements and evaluate performance, while the Rwanda Stock Exchange would assess applications for exchange status and monitor daily trading. The Capital Markets Authority would oversee licensing, conduct and compliance. Market makers could qualify for primary market participation and performance-linked privileges, while access to central bank repo and other liquidity facilities would remain subject to separate eligibility requirements. The pilot would be reviewed before expiry to determine whether it should be extended, amended, expanded, made permanent or discontinued.
Rwanda Capital Markets Authority launches consultation on a one-year government securities market making pilot
The Rwanda Capital Markets Authority has proposed a one-year pilot framework for designated market makers in government securities, initially covering three-year, 10-year and 15-year on-the-run Treasury bonds. Eligible firms would provide continuous firm two-way quotes, participate in primary auctions and meet capital, reporting, governance and conduct requirements. The National Bank of Rwanda would designate and evaluate market makers, with the Capital Markets Authority and Rwanda Stock Exchange responsible for regulatory and trading oversight.