BVB launches pilot programme for intermediaries that act as market makers for equities to boost liquidity

UniCredit Bank S.A.
Tue, 31/03/2020

BVB launches a pilot programme for intermediaries that act as market makers for equities to boost liquidity                                                       

Aiming to enhance the liquidity of shares, the Bucharest Stock Exchange (BVB) decided to introduce at the beginning of 2020, a pilot programme for intermediaries that act or intend to act as market makers. The programme is focused on quantitative rather than qualitative parameters.

Based on this new approach, the qualitative parameters become more flexible by eliminating the monthly compliance indicator regarding the number of sessions in a month. Daily quotation parameters as the minimum period for maintaining quotations in a trading session or maximum spread are also redefined.

Quantitative indicators are also being reconfigured by including additional terms through which discounts or bonuses are granted to intermediaries, given that the daily value traded on the house account (buy and sell) by a market maker on the respective share in the main market exceeds certain established value thresholds. Some base terms were also introduced which envisage that the daily fulfilment of the quoting parameters for a share (minimum quotation period, maximum spread) will accord the granting of standard market maker fees for the trades made by a market maker on the house account in the main market.

The target of BVB in regard to market making is reaching at least 15% of the total shares trading activity.


Manuela Velcea

Relationsip Manager, Global Securities Services Romania