Liquidity Providers and Market Makers

Cash Markets

Liquidity Providers (LPs) are trading members that act as market makers by committing to provide liquidity in an instrument listed on Euronext.

Liquidity Providers enhance 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 Euronext Member authorised to trade as either a dealer or broker/dealercan serve in this role. In general, the commercial agreement to serve as an LP 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 (see Resource Section for detailed Liquidity Provider Commitments).

The quality of the service provided by LPs on equities, bonds, structured products or exchange-traded products is monitored by Euronext.  The dedicated Euronext team that manages the contracts of LPs, monitors daily performance and supplies LPs and issuers with a monthly analysis of their commitments may be reached on LPEurope@euronext.com.

When applying to become an LP, the Euronext member must complete the relevant product Registration Form (see Resources Section) thus confirming its understanding and acceptance of the Terms and Conditions (see Resources Section) that apply to all Euronext cash and derivatives instruments. Two hard copies of the Registration Form, duly signed, must be returned to Euronext.

When an existing LP wants to add or remove an instrument on its contract, the LP Contract Update form should be completed (see Resource Section)

Please note that the Supplemental Liquidity Provider (SLP) programme on equitieshas specific eligibility criteria, scope and application process as detailed in the Info Flashes below.

Liquidity Providers are supported by Euronext Market Services. For more information, please contact:

Euronext Market Services
Equities & Bonds Desk
Email: EMSEquities@euronext.com
Tel: +33 1 49 27 50 10

SLP Info-Flashes

Liquidity Provider Programmes Derivatives Markets

Euronext has a range of Liquidity Provider programmes for its derivatives products across all of its markets. These programmes are tailored specifically to the needs of each market to ensure greater liquidity and tighter prices on screen.

In general, five different Liquidity Provider roles can be identified:

  • Primary Market Maker (PMM)
    Obligation to quote all series for all designated maturities in a contract.
  • Primary Liquidity Provider (PLP):
    Obligation to quote a pre-defined number of series In and Out of The Money for all designated maturities in a contract.
  • Competitive Market Maker (CMM):
    Obligation to quote a number of series within the Near The Money Area in a contract.
  • Responding Market Maker (RMM):
    Obligation to respond to RFQs for all designated maturities in a contract.
  • Designated Market Maker (DMM):
    Obligation to quote certain maturities within a contract.

Please find below links to the relevant documentation on the specific Liquidity Provider programmes including the Liquidity Provider Forms where you can find the necessary documents to apply for a specific role.

For more information, please contact the Client Coverage Centre (CCC). Contact details can be found on top of the right column on this page.

Liquidity providers Forms