Warrant Handbook

Role of Market Maker

A Market Maker can be the issuer itself (i.e. Kenanga Investment Bank Berhad) or an appointed designated Market Maker. A Market Maker provides liquidity by providing bid and offer price on the trading system of Bursa Securities on each market day over the life of the structured warrants.

There are 2 types of Market Makers:

  • By obligation
  • Voluntary

A Market Maker by obligation provides liquidity to the warrants by quoting both the bid and offer price on the following basis:

A good Market Maker will ensure sufficient liquidity in the particular warrant by continuously providing competitive buy and sell quotes, making it easier for you as investor to trade during the trading hours. By doing so, the Market Maker also ensures the stability of the warrant price.

It is important to choose a warrant issuer that offers a good market making service.