The Philippine Securities and Exchange Commission has issued draft rules establishing a regulatory framework for market making in equity and fixed income securities listed, traded or enrolled on a regulated exchange. The framework would limit market-making activities to licensed trading participants accredited by the relevant exchange under Commission oversight, with minimum unimpaired paid-up capital of PHP 150 million. Government securities covered by the Bureau of the Treasury’s primary dealer framework would remain outside scope unless the rules are expressly extended to them. Market makers would be subject to asset-class-specific quoting, spread, quote-size and inventory requirements calibrated by exchanges and approved by the Commission. They would also need a written market-making agreement, at least one designated specialist with five years of relevant experience, real-time or near real-time exposure monitoring, risk controls and five-year record retention. Exchanges would designate eligible securities, publish market-maker and performance information, monitor compliance and market abuse, report to the Commission and impose proportionate sanctions where necessary. Comments on the draft are due by Aug. 28, 2026. Exchanges would subsequently issue implementing guidelines for Commission approval, including detailed parameters for individual securities, liquidity tiers and product segments.

Original source