Article 1
Obligation for investment firms to enter into a market making agreement
1. Investment firms shall enter into a market making agreement regarding the financial instrument or instruments in which they pursue a market making strategy with the trading venue or venues at which this strategy takes place where, during half of the trading days over a one month period, in execution of the market making strategy, they:
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(a) |
post firm, simultaneous two-way quotes of comparable size and competitive prices |
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(b) |
deal on their own account in at least one financial instrument on one trading venue for at least 50 % of the daily trading hours of continuous trading at the respective trading venue, excluding opening and closing auctions. |
2. For the purposes of paragraph 1:
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(a) |
a quote shall be deemed to be a firm quote where it includes orders and quotes that under the rules of a trading venue can be matched against an opposite order or quote; |
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(b) |
quotes shall be deemed simultaneous two-way quotes if they are posted in such a way that both the bid and the ask-price are present in the order book at the same time; |
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(c) |
two quotes shall be deemed of comparable size when their sizes do not diverge by more than 50 % from each other; |
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(d) |
quotes shall be deemed to have competitive prices where they are posted at or within the maximum bid-ask range set by the trading venue and imposed upon every investment firm that has signed a market making agreement with that trading venue. |