In the secondary market, securities are sold by and transferred from one investor to another. It is therefore important that the secondary market be highly liquid and transparent.

The eligibility of stocks and bonds for trading in the secondary market is regulated by the Stock Exchange Act and the stock exchange rules and regulations. Foreign financial instruments can become eligible through the issue of depositary receipts.

The derivatives market consists only of a secondary market for standardized derivative instruments (i.e. instruments with comparable contract specifications).