Bangladesh Securities and Exchange Commission (BSEC) will bring changes to market maker rules in a bid to make its functioning effective.
The securities regulator’s move came following the stakeholders’ non-response to the rules even after its formulation 14 years ago.
“The commission has decided to form a three-member panel to amend the market maker rules,” BSEC said in a statement yesterday.
The panel was asked to submit its report to the commission within the next 30 working days.
A market maker is a company, or an individual, that quotes both a buy and a sell-off price in a financial instrument or commodity held in an inventory, hoping to make a profit on the bid-offer spread, or turn.
No stakeholders like banks, merchant banks and stockbrokers showed interest to be a market maker since the rules were framed in 2,000 as they (stakeholders) found that they failed to make any profit because of tough rules, market experts said.