Market Makers, Liquidity providers and Specialists
The bond markets of Borsa Italiana provide the possibility for certain entities to be authorized to perform liquidity support activities on the secondary market.
In particular, for the MOT markets (MIC: MOTX) and Euronext Access Milan (MIC: XMOT), the roles outlined by the regulations are as follows:
- Market Maker MiFiD II (MMA): an entity authorized to operate continuously, in buy and sell positions, in compliance with MiFiD II obligations;
- Liquidity Provider (LPU): an entity authorized to operate continuously, only in buy position and on voluntary basis, on instruments he has selected;
- Specialist (SPE): an entity authorized to operate continuously, in buy and sell or only buy position, on securities for which he has an agreement with the issuer of the instrument to support liquidity on the secondary market.
For the EuroTLX market (MIC: ETLX), the roles outlined by the regulations are as follows:
- Market Maker (MMX): an entity authorized to operate continuously, buy and sell position (MiFiD II) or only buy position, on instruments he has selected;
- Specialist (SPE): an entity authorized to operate continuously, in buy and sell or only buy position, on securities for which he is the issuer or issued by a banking issuer for which he acts as the distributor or for which he has an agreement with the issuer to support liquidity on the secondary market.
The operator, who has been accredited in advance to perform liquidity support activities, must comply with liquidity obligations in terms of presence, minimum quantity, and spread (where applicable) as specified in the following Parameters Guide.
All operators accredited for liquidity support activities, along with their roles and the list of associated instruments, are available in the following file: