Market Making Incentive Scheme

Overview of ETF Market Making Scheme

With the background of growing importance of the people's stable asset forming, TSE has introduced ETF Market Making Incentive Scheme since July 2, 2018, in order to improve the liquidity of ETFs, which are one of the products that contribute to small-amount diversified investment.
TSE designates market makers for each issue based on the application and will provide incentives to designated market maker who fulfilled the obligation. With continuous quote by market maker, a sufficient amount of orders are shown at the fair price, so that investors can buy or sell ETFs at a desired timing.
Moreover, this scheme involves having asset managements as sponsors for additional incentives as a reward to bespoke obligation (Sponsored ETF Market Making Scheme). It is expected that more quote will be shown by market makers with this arrangement.

List of ETFs signed up by Market Maker
ST-1 Handling of ETF Market Making Scheme icon-pdf
ST-2 (for market maker) List of ETFs that can be market-making icon-xls
[Ref.]Update of ETF Market Making Scheme Ver2.0
(From April 2021)
[Ref.]Update of ETF Market Making Scheme Ver2.0
(From October 2021)