The Securities and Exchange Organization has allowed market making funds to issue various types of option contracts.
Issuing options contracts so far was within the purview of the Capital Market Development Fund (CMDF). The fund operates in tandem with the Capital Market Stabilization Fund, jointly responsible for supporting the bourse and help safeguard the interest of investors.
An options contract is an agreement between two parties to facilitate a potential transaction involving an asset at a preset price and date.
February 02, 2022 12:41
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SEO: Market Makers Can Issue Option Contracts
Issuing put options is primarily to reassure investors that their shares hold value and that they reconsider before selling. The move also is in line with government efforts to lift the share market that has taken a hit since the August of 2020
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