Market News

Sep. 04, 2019 TSE Update of ETF Market Making Incentive Scheme Version 2.0


Tokyo Stock Exchange, Inc. (TSE) introduced an ETF Market Making Incentive Scheme in order to improve liquidity in the ETF market in July 2018. Thereafter, TSE launched ETF Market Making Scheme Version 2.0 (Ver.2.0) in April 2019 and will now be updating said scheme on October 1, 2019.

In Ver. 2.0, TSE will set additional quoting obligations and incentives for limited time spans and ETFs, requiring market makers to display quotes in sufficient amounts to match the scale of trades by institutional investors with the aim of developing Star ETFs that represent each asset class. The new eligible ETF lineup will include REIT ETFs and an increased maximum number of US equity ETFs and US corporate bond ETFs for market making to further improve convenience for investors.

The revisions are expected to result in deeper liquidity for the ETF market while facilitating swift trading at fair prices. More details can be found in the appendix.

TSE remains committed to promoting the growth of a convenient market for investors.

Revision of ETF Market Making Incentive Scheme Ver2.0
(From October 2019)
Overview of Market Making Incentive Scheme


Tokyo Stock Exchange, Inc. Equities Department
TEL:Tel: +81-3-3666-0141