On August 7, the Securities Market Superintendency (SMV, for its acronym in Spanish), issued Resolution SMV Nº 007-2020-SMV/01, modifying the Regulation of the operations of the Lima Stock Exchange, with the objective of introducing additional rules and conditions to the Securities Market Maker to provide more liquidity to these securities.
The resolution states that all operations carried out through a company as a Market Maker, must be distinguished between operations on its own account or on behalf of third parties. Likewise, a record of the transactions carried out as Market Maker must be kept separately from other transactions carried out either in its own name or in the committee’s name.
Among the obligations with which companies must comply as Market Maker, is to enter purchase and sale proposals that must be entered within the time limit established in the complementary provision of Article 3 of the regulations, considering the maximum spread and minimum daily amount.
On the other hand, the resolution stipulates that stock brokerage companies with current contracts as Market Makers have until January 31, 2021 to adapt to the established modifications. At the same time, once the term has expired, the rendering of these services must be subject to the provisions of this regulation.