What action is required if a market maker fails to maintain their clearing relationship?

When a market maker fails to maintain their clearing relationship, they are required to withdraw their quotes immediately. This is critical because maintaining a clearing relationship is essential for executing trades and settling transactions efficiently. If a market maker does not have an established clearing relationship, they cannot ensure that trades will be correctly processed and settled, which can create systemic risks in the market.

Immediate withdrawal of quotes ensures that the market remains orderly and that other participants are not misled by quotes that cannot be honored due to the lack of a functioning clearing agreement. This regulatory requirement helps to protect market integrity and provides a safeguard against potential trading disruptions.