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Most Asked Questions

Why do issuers only provide active quotes under specified circumstances?

A liquidity provider’s quotation for products must be based on actual market conditions. There are three key considerations for an issuer when deciding if active quotes can be provided:

(a) if the product is suitable in terms of demand and risk management;

(b) if the market conditions affecting the underlying asset, such as its liquidity and the availability of hedging, permit active quotations; and

(c) the prevailing market conditions affecting the product itself, such as supply and demand patterns.