On September 17, the Financial Markets Commission (CMF for its acronym in Spanish) announced the launch of a public consultation to be held on Monday 23 on a legislative proposal to amend the General Rule No. 327 of 2012 on securities with a stock presence. The consultation will close on October 18.
The regulation proposed specifically seeks to update the requirements detailing how a security can be considered to have stock-exchange presence. This is in a bid to make the different uses for this concept compatible with the current legal framework, and to achieve the legal certainty required by market agents to reassure them about the benefits, costs and risks of investing in certain markets and instruments.
The text of the proposal states that a security will be considered to have stock market presence if:
- a) It is registered in the Securities Registry;
- b) It is registered in a Chilean stock exchange; and
- c) It complies with at least one of the following requirements:
- Has an adjusted presence equal to or greater than 75%.
- Has a “Market Maker” that has initiated operations, under the terms and conditions established in this Rule.”
With regard to the last point, the regulations update the conditions that a security must meet in order to be considered a Market Maker.