Market Makers and Liquidity Providers

Market Makers

MiFID II reference: RTS 8 - market making agreements and schemes

Investment firms engaged in algorithmic trading and pursuing market making strategies on any Euronext tradable instrument are required to enter into a Market Making Agreement (available under the documents section below) with Euronext by submitting the complete Registration Form.

Euronext also offers Market Making Schemes on the following instruments, if there is a liquid market: equities, ETFs, ETF options, equity options and futures, equity index options and futures.

As a reminder, Market Makers (whether under a Scheme or only under the Agreement) will be required, amongst other things, to post firm, simultaneous two-way quotes of comparable size and competitive prices, and deal on their own account for at least 50% of the continuous trading session during at least half of the trading days over a single calendar month period, as a minimum.

Registration process

All Euronext members acting as Market Makers must complete the online Registration Form thus confirming their understanding and acceptance of the General Terms and Conditions (available under the documents section below) that apply to all Euronext Cash and Derivatives instruments.

Upon entering into the Market Making Agreement through the completion of the Registration Form, Members are eligible to apply for a Market Making Scheme  for each specific product individually, except where indicated otherwise. 

Euronext will enable online submission via the Market Making Registration Form for Authorised Representatives and those authorised to sign on behalf of the Member. The process is as follows: 

  • Log in at connect2.euronext.com
  • If you have forgotten your password or need to create one for a first connection, go to:: connect2.euronext.com/user/password
  • Once logged in, the Registration Form is available in the main navigation, under ‘Members forms’ section
  • Complete the electronic Market Maker Registration Form including the individual instrument(s) for which the participant is applying for Market Maker status
  • Confirm acceptance of the General Terms and Conditions with the online sign-off process

When an existing Market Maker wants to add or remove an instrument on its contract, the Registration Form should be re-submitted.

Please note that the online registration process is not available for Members requiring more than one signatory to approve the General Terms and Conditions. In such cases, Members are required to use the regular Registration Form (available on the documents section below)

Schemes

Euronext has implemented a range of Market Making Schemes on its Cash and Derivatives products across all of its markets to be compliant with MiFID II regulation:

  • Market Making schemes for Equities are detailed in this Info Flash
  • Market Making schemes for Derivativesare available in the documents section below
  • Market Making schemes for Exchange Traded Products are available in the documents section below

Market Makers under the different Market Making Schemes or under the Agreement will be required to flag all relevant orders and quotes on the Euronext Order Entry systems as follows:

  • Account code 6 on Euronext Cash Markets, combined with Algorithm flagged for the MiFID II field ExecutionWithinFirmShortCode;
  • Account code M on Euronext Derivatives Markets, Algorithm flagged for the MiFID II field ExecutionWithinFirmShortCode;
  • Account code 8 for Securitised Derivatives, Algorithm flagged for the MiFID II field ExecutionWithinFirmShortCode.

Stressed Market Conditions

Euronext will introduce ‘Stressed Market Conditions’, during which the obligation of the participant under the Market Making Scheme to provide liquidity on a regular and predictable basis will be amended to double the spread requirements for cash and derivatives markets. Euronext will inform market participants of Stressed Market Conditions market status via the Euronext website.

During Stressed Market Conditions, presence will continue to be monitored but different incentives will apply to Market Makers.

Liquidity Providers

In addition to the MiFID II requirements, Euronext will maintain Liquidity Provider Programmes on some specific instruments to accommodate product and participant requirements. These Liquidity Providers Programmes are not subject to MiFID II regulations. They will be available on this webpage in due course.

All Liquidity Providers under the different Liquidity Provider Programmes will be required to flag all relevant orders and quotes on the Euronext systems as follows:

  • account code 6 on Euronext Cash Markets (including Securitised Derivatives);
  • account code M for Euronext Derivatives Markets.

For more information, please contact the LPeurope@euronext.com.