As a professional, I have researched and written an article on « market maker agreement euronext, » which discusses the importance and relevance of market maker agreement on Euronext stock exchange.
Euronext is a leading European stock exchange that operates in Belgium, France, Ireland, the Netherlands, Norway, and Portugal. It is one of the largest stock exchanges in the world, and it provides a platform for companies to issue shares, bonds, and other securities to raise capital.
Market maker agreement is an essential component of Euronext`s trading mechanism. Market makers are financial institutions that agree to buy and sell securities at a quoted price on an ongoing basis. They ensure liquidity in the market, which is necessary for efficient trading of securities.
Euronext has a strict policy on market making that requires all companies listed on its exchange to have at least one market maker. Companies are responsible for appointing a market maker, and they have to sign a market maker agreement with the chosen institution.
The market maker agreement is a legally binding contract that outlines the roles and responsibilities of the market maker and the listed company. It specifies the minimum order size, the number of securities to be traded, and the bid and ask prices. The agreement also includes a provision for the market maker to ensure liquidity in the market by maintaining a minimum order book size and providing continuous quotes.
The market maker agreement provides benefits to both parties. Companies benefit from increased liquidity in their securities, which makes them more attractive to investors. Market makers benefit from the opportunity to make profits through trading activities.
It is essential for companies to choose a reputable market maker that can fulfill its obligations under the agreement. Euronext has a list of approved market makers, and companies can select from this list.
In conclusion, the market maker agreement is an important part of Euronext`s trading mechanism. It ensures liquidity in the market and provides benefits to both companies and market makers. Companies should choose a reputable market maker and carefully examine the terms of the agreement to ensure a successful partnership.