Liquidity Provider and Market Maker
In accordance with article 36 of the Market Rules, EPEX SPOT (formerly 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 EPEX SPOT Continuous Intraday Market (formerly Belpex CIM).
The general principles governing Liquidity Provider agreements, as well as the names of participants currently fulfilling the role of liquidity provider, are set out below.
Liquidity Provider CIM
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 EPEX SPOT participant may enter into a Liquidity Provider agreement with EPEX SPOT for one or more Instrument Series of the EPEX SPOT 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 download the General Principles of a Liquidity Provider Agreement CIM applicable for the EPEX SPOT CIM document.
List of liquidity providers
The liquidity providers currently active on the EPEX SPOT CIM, in accordance with the new rule, will be updated as soon as possible.