SFC Guidance to ETF Fund Managers and Market Makers after Temporary Halt by ETF Market Maker amid COVID-19 Pandemic

Altug GuzeldereManaging Partner, Guzeldere & Balkan Law Firm

The Securities and Futures Commission(SFC) issued a Circular to Management Companies and Market Makers of SFC-Authorised Exchange Traded Funds [1] (the SFC ETF Circular) on 17 April 2020 reminding management companies and market makers[2] of SFC-authorised exchange traded funds (ETFs) of their risk management obligations amid the COVID-19 outbreak. This followed the temporary suspension of market making functions by the sole market maker of one ETF due to some of its traders being under mandatory COVID-19 quarantine, raising concerns as to ETF management companies’ and market makers’ ability to manage this risk. Read More…