SEC Issues Rules on Market Making To Boost Trading Activity

As seen on SEC’s official Facebook – The Securities and Exchange Commission (SEC) has issued rules establishing a regulatory framework for market making, aligning local market practices with international standards to enhance liquidity, improve price discovery, and support capital formation.

The Commission on October 15 issued SEC Memorandum Circular No. 28, Series of 2026, providing for the SEC Rules on Market Making.

Market making is a globally adopted mechanism wherein trading participants provide simultaneous posting of two-way quotes, or both the buying price and the selling price, for the purpose of ensuring liquidity and maintaining a fair and orderly trading market.

The rules outline the eligibility requirements for market makers, their disclosure, recordkeeping, and reporting obligations, incentives, as well as investor protection and market integrity safeguards.

It applies to market making activities in equity and fixed income securities listed, traded or enrolled on an exchange under jurisdiction of the SEC. It will not cover such activities in government securities governed by the Bureau of Treasury (BTr)’s Primary Dealer framework, unless and until the Commission, in coordination with the BTr, expressly extends its application.

Read the full MC here: https://www.sec.gov.ph/…/sec-mc-no-28-series-of-2026sec…