China is reportedly considering allowing Western firms to act as market makers in its $520 billion exchange-traded fund (ETF) sector. This move aims to enhance liquidity and reduce costs in the growing market, which has expanded by 134% over the past two years to reach $510 billion in assets, making it the second-largest ETF market in the Asia-Pacific region after Japan. Potential beneficiaries of this policy shift include Citadel Securities, Jane Street, and Optiver, the latter of which is based in Amsterdam and is known for its expertise in providing market liquidity. Citadel has already applied to establish its own securities brokerage in China earlier this year. While the policy could boost efficiency and attract foreign expertise, sources indicate that escalating trade tensions between China and the United States, including tariffs imposed by President Trump, may delay a final decision.