Obligations
The market maker must separate the market making, liquidity provision, the trading floor. and the employees of the activity from other activities. The separation requirements include, for example, digital and physical records, bank accounts and trading account. Access to the activity offices is limited to authorized employees only.
While exercising the activity, the Market Maker shall comply with the following:
- Preserving the stability of the Stock Exchange by working to reduce sharp fluctuations in the prices of eligible securities.
- Ensuring the availability and follow-up of a sufficient balance of cash and eligible securities to fulfill its obligations on an ongoing basis, in order to facilitate the process of pumping thereof into the Stock Exchange, when needed.
- The entered buy or sell order must be among the best(3) three requests or offers entered in the order book at the time the order is entered.
- Submitting the following data and information to the Stock Exchange:
• Quarterly report on profits and losses, and the size of the securities portfolio. |
• A semi-annual report on the internal procedures of the market maker, including the risks that were discovered and the corrective action plan that was implemented. |
• Any other data or information required by the Exchange. |
- The market making agreement specifies the data, numbers, and financial values that the market maker must abide by, according to the following:
- The minimum monthly trading percentage.
- The percentage of presence in the continuous trading session.
- The maximum price difference between bid and ask.
- The maximum period for updating orders.
- The minimum value of bid and ask orders.
- The market maker must inform the Stock Exchange immediately in the event of a change in its legal, regulatory or financial status, or any decisions taken against it, the members of the board of directors, the directors or the executive management, whether in the Sultanat of Oman or any other country.