Liquidity Provider and Market Maker
In accordance with article 36 of the Market Rules Belpex may enter into agreements that aim to improve the liquidity of one or more of its Market Segments.
Such an agreement will be referred to as Liquidity Provider Agreement CIM in respect of the Belpex Continuous Intraday Market (Belpex CIM) and as Liquidity Provider Agreement CoDAM in respect of the Belpex Continuous Day Ahead Market (“Belpex CoDAM).
The general principles governing Liquidity Provider agreements, as well as the names of participants currently fulfilling the role of liquidity provider are set out hereunder.
Liquidity Provider CoDAM
Introduction
A Liquidity Provider CoDAM is a market participant that has committed to quote purchase and sales orders in respect of one or more Instrument Series of the Belpex CoDAM. The difference between the purchase order price and sales order price may not exceed an agreed upon price spread. The Liquidty provider CoDAM may change its purchase and sales orders at any time provided that aforementioned spread is respected. The obligation to quote purchase and sales orders may be subject to time or volume constraints or to specific market situations.
The Liquidity Provider CoDAM is rewarded for its liquidity improving intervention by means of reduction on the operational fees applicable for the CoDAM.
General principles governing a Liquidity Provider Agreement CoDAM
Any Belpex participant may enter into a Liquidity Provider Agreement CoDAM with Belpex for one or more Instrument Series of the Belpex CoDAM. There are currently no restrictions as to the minimum or maximum required number of liquidity providers for an Instrument Series.
Belpex has not yet established the general principles governing a Liquidity Provider Agreement CoDAM. If you would be interested in becoming a Liquidity Provider CoDAM, please don’t hesitate to contact the Belpex Account Manager mentioned here above.
List of liquidity providers
There are currently no Liquidity Providers CoDAM active on the Belpex CoDAM
Liquidity Provider CIM
Introduction
Given the specific nature of an intraday market, the Liquidity Provider Agreement CIM deviates from a traditional liquidity provider approach since in intraday, a market party is not necessarily able to quote competitive sales and purchase orders. Therefore, the Liquidity Provider Agreement is based on the principle of an obligation to quote competitive sales or purchase orders.
The liquidity provider is rewarded for its liquidity improving intervention by means of reduction on the operational fees.
General principles governing a liquidity provider agreement
Any Belpex participant may enter into a Liquidity Provider agreement with Belpex for one or more Instrument Series of the Belpex CIM. There are currently no restrictions as to the minimum or maximum required number of liquidity providers for an Instrument Series.
To view the general principles that govern a LP agreement please click here
List of liquidity providers
The liquidity providers currently active on the Belpex CIM, as well as the particularities of there liquidity provision commitment are: