Market makers (MMs), or liquidity providers (LPs), are trading members that commit to provide liquidity in a designated company’s equity.
MMs and LPs enhance NYSE Euronext markets because they protect against variations in volatility on the market, guarantee transactions at all times at the best price and support the volume of transactions in the Central Order Book.
Any NYSE Euronext Member can serve in this role, although Members should verify that they have the applicable regulatory status. See the Eligibility section for more details. In general, the commercial agreement to serve as a market maker for equities, bonds, structured products or exchange-traded products obligates the member to quote two-way bid and offer prices with a minimum capital amount and maximum spread. Those obligations vary depending on the nature of the product.
The quality of the service provided by market makers/liquidity providers on equities, bonds, structured products or exchange-traded products is monitored by NYSE Euronext’s Business Analysis and Statistics department, which manages the contracts of MMs/LPs and monitors both performance and commitments, as well as supplying MMS, LPs and issuers with a monthly analysis of their performance on the market.
To apply to become a Liquidity Provider on Equities, or to make any changes to an existing Liquidity Provider on Equities Agreement, please fill out the LP Equity Application form (see Resources section) and return it to NYSE Euronext at least two working days in advance of your desired start date. Please note that before any new conditions come into force, a new or updated contract must also be signed and returned to NYSE Euronext.
Market makers/liquidity providers are supported by NYSE Euronext Market Surveillance. For more information, please contact:
NYSE Euronext Market Surveillance
Equities & Bonds Desk
Phone: +33 1 49 27 50 10