Liquidity Provider(LP)

Liquidity Provider (LP) should maintain spread during trading hours. The spread should be within 2% for ETFs tracking domestic underlying asset and within 3% for ETFs tracking overseas underlying asset and bid and ask orders should be submitted of more than 100 shares. If the spread surpasses specified spread, LP should offer quote within 5 minutes. Since LP system exists, even though trading is not active, investor can easily buy and sell ETF in market. As of April 2021, total 25 companies work as LP.