In July, BVB said it will allow brokers to get a higher profit from the “market making“ services and will decrease fees for such transactions in order to help them grow the daily liquidity of the listed shares.
The Bourse set up a category of “supermarket makers,“ which should ensure a 50% higher liquidity than a classical market maker. In exchange, they will pay a fee of only 0.005% on market making transactions and will be allowed a spread 0.25% higher than a common market maker.
The main purpose of the market maker is to ensure liquidity on the market, shares benefiting from better stability of quotation while investors manage easier to find counterparty.
Market makers ensure, on their own expense, sale and buying orders for a certain minimum volume of shares, which guarantee investors, in any moment, a counterparty is willing to buy or sell the shares. Brokers have certain restrictions on the profit they can get from spread, the difference between the sale and buying quotations. For this service, the bourse gave brokers preferential fees.
(English version by Manuela Panescu)