Market participants welcomed the Philippine Stock Exchange’s (PSE) proposed market-making framework but said its immediate effect on market liquidity may be limited, according to a BusinessWorld report.
Analysts noted that the proposal currently covers only a small number of products, which tempers any near-term boost to trading activity. The framework aims to enhance liquidity by incentivizing designated market makers to provide continuous quotes for specific securities.
While the initiative was generally seen as a positive step toward deepening the Philippine capital market, stakeholders emphasized that broader adoption and a wider product scope would be needed for a significant liquidity impact. The PSE has yet to announce an implementation timeline.