The Philippine Stock Exchange (PSE) has proposed a general market-making framework that would extend coverage beyond exchange-traded funds to other exchange-traded products, as it tries to improve liquidity and standardize rules across the market, BusinessWorld reported.
In a circular released on Wednesday, the bourse said the framework would serve as a unified structure for market-making activities, covering products such as exchange-traded notes and structured warrants. The proposed rules aim to enhance price efficiency and narrow bid-ask spreads by designating market makers with obligations to provide continuous quotes.
The PSE's move comes as it seeks to boost the attractiveness of its listed products and align with international best practices. The bourse is now soliciting public comments on the proposal before finalizing the new framework.