Proposed Amendment To Rule 234- Inter-Dealer Broker

Details of the proposals are as follows:

Legend:
Additions are underlined
Deletions are ~~struck through~~
Justifications are italicized

Name/citation of the Rule – Inter-Dealer Broker

Full text of Existing Rule
Inter-Dealer Broker (IDB) means a financial intermediary operating in the bonds or OTC derivatives market, which acts as an intermediary between major dealers and other financial institutions in the capital market such as but not limited to brokers, market makers, pension funds, fund managers and insurance companies.

Proposed Amendment
Inter-Dealer Broker (IDB) means a financial intermediary operating in the bonds, or OTC and Exchange-traded derivatives market, which acts as an intermediary between major dealers and other financial institutions in the capital market such as but not limited to brokers, market makers, pension funds, fund managers and insurance companies.

Justification
To expand the scope of the activities of Inter-Dealer Brokers and allow them participate in both OTC and Exchange-traded Derivatives markets with the overall objective of deepening the market and enhancing market liquidity.