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  • Additional Market Making Rules for Equity Securities

    • Shareholders' Approval and Share Repurchase

      • MIR-4.19.38

        In addition to the aforementioned rules specified under Section MIR4.19, an issuer of equity security must seek prior approval of shareholders at a general meeting before entering into a market making agreement.

        Added: January 2019

      • MIR-4.19.39

        An issuer may repurchase its own shares for the purpose of market making after obtaining shareholders' approval.

        Added: January 2019

      • MIR-4.19.40

        The maximum number of shares that an issuer can repurchase for the purpose of market making must not exceed 3% of the total issued shares.

        Added: January 2019

      • MIR-4.19.41

        The repurchase limit of 3% referred to in Paragraph MAE-4.19.40 must be included as part of the overall repurchase limit of 10% set out under TMA-4.1.8.

        Added: January 2019

      • MIR-4.19.42

        Where an issuer undertakes share repurchase for the purpose of market making, the issuer must ensure that the share repurchase plan complies with the requirements of Module TMA (see Section TMA - 4.1).

        Added: January 2019

    • Material Rights of Shares Deposited in the Securities Account

      • MIR-4.19.43

        Apart from the right to allocation of new shares free of charge, all other material rights of the shares deposited in the securities account must remain suspended.

        Added: January 2019

      • MIR-4.19.44

        The issuer and the market maker must ensure that the suspension of material rights referred to in Paragraph-4.19.43 is complied with, particularly with regards to dividend payments.

        Added: January 2019

    • Prior acquisition of shares to deposit in securities account

      • MIR-4.19.45

        Where the issuer does not deposit shares into the securities account or deposits a number of shares that is insufficient to enable market making operation to commence under the agreement, there should be an initial period during which the market maker may only buy shares of the issuer until it attains the volume that is predetermined in the market making agreement. Such acquisition should be for the sole purpose of enabling the market maker to commence operations under the market making agreement and they should be performed in the issuer's best interest but without interfering or hampering normal market operations and without misleading other market participants.

        Added: January 2019

      • MIR-4.19.46

        The shares acquired in the initial period should be deposited in the securities account referred to in Paragraph MIR-4.19.16.

        Added: January 2019

      • MIR-4.19.47

        The market maker should not sell any of the issuer's shares deposited in the securities account until the initial period concludes or until it attains the limits established in terms of number of shares or value of shares for the purpose of undertaking market making.

        Added: January 2019

      • MIR-4.19.48

        Where the initial period concludes and the minimum initial balance of shares in the securities account referred to in Paragraph MIR-4.19.16 has not been attained, the issuer and the market maker may:

        a) Extend the initial period by a length of time not greater than the initially established period.
        a) Terminate the agreement
        b) Establish a lower number of shares
        Added: January 2019