The Securities and Exchange Commission (SEC) has released draft rules that would allow exchanges to offer incentives to market makers, including reduced transaction fees, liquidity rebates, and access to enhanced trading facilities, as part of a proposed framework for listed securities, BusinessWorld reported.
The draft circular, released on June 17, is open for public comment until July 17. The SEC said the proposed framework aims to enhance market liquidity, narrow bid-ask spreads, and improve price discovery by encouraging more active participation from market makers.
Market makers that meet certain volume and quoting obligations would be eligible for the incentives. The SEC said the rules are part of broader efforts to develop the Philippine capital market and align with global best practices.