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  • Temporary Suspension of Market Making Activity

    • MAE-4.6.14

      A licensed exchange or licensed market operator must specify the exceptional circumstances wherein a market maker's obligation to provide liquidity on a regular and predictable basis does not apply.

      Added: January 2019

    • MAE-4.6.15

      A licensed exchange or licensed market operator may have regards to the following situations in determining exceptional circumstances referred to under Paragraph MAE-4.6.14:

      (a) A situation of extreme volatility;
      (b) Disorderly trading conditions where the maintenance of fair, orderly and transparent execution of trades is compromised, and evidence of any of the following is provided;
      (i) the performance of the licensed exchange or licensed market operator system being significantly affected by delays and interruptions;
      (ii) force majeure or cyber sabotage.
      (c) Where the market maker's ability to maintain prudent risk management practices is prevented by any one of the following;
      (i) technological issues, including problems with the data feed or other systems to carry out market making; and
      (ii) risk management issues in relation to capital requirement, margining and access to clearing.
      Added: January 2019

    • MAE-4.6.16

      A licensed exchange or licensed market operator must set out clear procedures for resumption of normal trading after the exceptional circumstance have ceased to exist and must make those procedures publicly available.

      Added: January 2019

    • MAE-4.6.17

      A licensed exchange or licensed market operator must make public the occurrence of the exceptional circumstances referred to under Paragraph-4.6.14 and, as soon as technically possible, the resumption of their normal trading after the exceptional circumstances have ceased to exist.

      Added: January 2019