The Securities and Exchange Commission has established a regulatory framework for market making across Philippine securities exchanges, setting a minimum capital threshold of 150 million pesos for trading participants to boost capital market liquidity.

The commission issued Memorandum Circular No. 28, Series of 2026 on Oct. 15, providing rules to govern firm two-sided quotations for equity and corporate fixed-income securities listed or enrolled on local exchanges. (Read More: SEC Investment Watchlist Philippines: Advisories, Cease-and-Desist Orders, and Flagged Schemes)

Under MC 28, market makers must maintain executable buy and sell quotes during specified trading sessions. Qualified trading participants must hold at least 150 million pesos in unimpaired paid-up capital and designate at least one specialist with a minimum of three years of relevant securities trading or market-making experience.

The rules apply to exchange-listed equity and debt instruments under SEC jurisdiction. Government securities under the Bureau of the Treasury Primary Dealer framework are excluded unless explicitly extended by regulators.

“Establishing a robust market making framework is an important milestone in our efforts to boost trading activity in the Philippine capital market,” SEC Chairperson Francis Lim said in a statement.

To support compliance, exchanges will offer market makers performance incentives, including reduced transaction fees, liquidity rebates, and access to enhanced trading facilities. Existing market makers have a six-month transition period from the effectivity of MC 28 to comply, while exchanges must submit implementing guidelines to the SEC within 30 days.

Disclosure: AI is used to assist in developing this article.

This article is published on BitPinas: SEC Sets ₱150 Million Capital Requirement in New Market Making Framework

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