The Market Makers and the Liquidity Providers are the BVB participants that support the liquidity on the financial instruments on which they are registered, by placing buy and sell firm offers during a certain period of the Continuous trading (Open stage of the market), under specific quoting terms (minimum volume and maximum spread). This activity is carried out based on the agreement between such participant and BVB, according to the specific of the financial instrument. Also, an economic incentive is granted to them for providing liquidity.
The Market Making activity for shares contributes to the improvement of the market’s liquidity for the shares on which they are registered, as well as to enhance the quality of the market for the investors.
The program developed by BVB for the Market Makers registered for shares traded on the BVB’s regulated market intends to provide a better efficiency and to bring the benefits on the market structure in terms of Market Makers’ affirmative involvement, better conditions for competitive quoting, price improvement and liquidity.
The liquidity providing activity can be considered as a dedicated business line by the BVB Participants, which represents a trade-off between their more active involvement in the market and the benefit granted in terms of the discounted trading fees applied to them.
BVB attaches a great attention to the activity of Market Makers and appreciates the involvement of the current Market Makers in the program as the participants which contribute to the bettering market conditions of the shares considered. Also, BVB is eager to provide full support for any other participant interested to be implied in this program.