What Is a Market-Making Member?
It refers to a market maker that provides liquidity to KRX BondsAll to help investors trade bonds smoothly. The market-making member provides liquidity by submitting quotations continuously to trade the relevant bonds.
Qualification of a Market-Making Member
A member licensed for investment trading business on debt securities
Designation and Termination of Designation as Market-Making Member
A member who intends to be a market-making member should file an application for designation by the deadline set by KRX each quarter.
Termination of designation
The designation is terminated by an application of the member or when the member is found to have been under disciplinary actions by the Market Oversight Committee because of an unfair trading in relation to market-making activities.
Method of Market-Making
Market makers are required to place both-sided quotations (bid and ask) amounting from KRW 100 mil. to 10 bil. within 0.15%p of bid/offer spread (0.1%p in case of government bonds, 0.2%p in case of corporate bonds less than AA- rated) continuously for 2/3 or longer of the daily trading hours.
< Basic Market-Making Requirements >
Number of Issues
per Day
Quotation Amount Market-Making Time Spread Market-Making Days
Government Bonds Corporate bonds less than AA-rated Other Bonds
15 issues or more Both-sided KRW 100 mil. ~ 10 bil. 2/3 or more of daily
trading hours
0.1%p 0.2%p 0.15%p 2/3 or more of the total trading days during the assessment period
Benefits for Market-Making Members
Trading fees are not imposed on transactions by market-making quotations. In addition, KRX pays for market-making according to each member's performance.