The role of liquidity providers is to protect against variations in volatility on the market, to facilitate transactions and to boost volumes. Liquidity providers must be members of Euronext and must possess an E.U. passport. Only members who trade on their own account may act as liquidity providers.
In 2009, NYSE Euronext staff met with liquidity providers active on the bond market in order to identify their areas of concern and their expectations and to promote the liquidity of the secondary market. Following these meetings, a new market-making model was created:
Supervisory tools have been enriched accordingly to improve the quality of reporting and monitoring of liquidity provision.
Simplified Procedure for Requesting Liquidity Provision on Bonds
NYSE Euronext has established a simplified procedure, within the scope of a new liquidity provision agreement to allow members to act as liquidity providers on the bonds of their choice.
For more information, please consult our Liquidity Provider Procedure Brochure.