Philippines SEC establishes market-making framework

The Philippine Securities and Exchange Commission (SEC) has issued Memorandum Circular No. 28, Series of 2026, establishing the country’s first comprehensive regulatory framework for market making. The new rules apply to both equity and fixed-income securities and target trading participants accredited by relevant exchanges.

To qualify as a market maker, firms must maintain a minimum of P150 million in unimpaired paid-up capital. Additionally, each accredited firm is required to designate at least one specialist with a minimum of three years of securities trading or market-making experience, or equivalent certified proficiency.

The Department of Finance (DOF) has welcomed the reform, noting that it aims to improve market liquidity, enhance trading efficiency, and align Philippine capital markets with international standards. By ensuring the availability of simultaneous buy and sell quotations, the framework is intended to facilitate more efficient price discovery and encourage both domestic and foreign investor participation.