Issuers making the market

[NJ_1]

In SA we are clearly trading with very limited market volume, compared to some of the huge world stock exchanges. My question is: to what degree are warrant issuers obliged to make the market? Are they bound by law or regulations to buy/sell warrants no matter the volumes traded on the underlying, or can they protect themselves by refusing to trade at some point?

[SimonPB]

they only buy/sell in volume that can be hedged. So in short your derivative is as liquid as the underlying.

[NJ_1]

Thanks, Simon.