BRK, one of the most active brokers on the stock exchange, is the first market maker for TTS shares and will support improving the liquidity.
“As a listed company, we aim to align with the best practices in our investors relation activity. We believe that the liquidity support program is in line with our goals of creating value for shareholders. We want TTS shares to be included in local and international indices (with direct reference to the index series of global supplier FTSE Russell) in order to increase the interest in TTS shares among potential investors, and liquidity is the main criterion for including our shares in these indices. We signed a contract with BRK Financial Group for a 2-year period, and the agreed listing parameters were calibrated in close connection with the TTS market capitalization, with the free float and with the proposed objectives”, said Petru Stefanut, CEO of TTS.
The Issuer’s Market Maker (IMM) activity will be performed by BRK Financial Group based on a contract signed with TTS.
“We appreciate TTS’s decision to use the issuer market making service offered by BRK Financial Group, shortly after the listing of the shares on the stock exchange. Liquidity contributes in the long run volatility’s reduction and of the associated risk. We observed empirically that in the top of daily turnover, the shares that have the liquidity provided by a market maker are on leading positions. Our commitment within this partnership consists in listing a minimum volume of 11,000 shares (both in BID and ASK), at a maximum spread of 3%, but our internal objective is to quote with an average spread around 1.50 and a market presence of at least 90% of the trading sessions”, said Monica Ivan, CEO of BRK Financial Group.
Thus, BRK becomes the Issuer’s Market Maker for 10 issues: shares of TTS (Transport Trade Services), Bucharest Stock Exchange, Antibiotice, Aages, Impact Developer&Contractor, MedLife, Romcarbon, TeraPlast, Purcari Wineries, as well as for IMP26E bonds.
The IMM is the participant in the BVB’s trading system that has taken on the role of sustaining the liquidity of a financial instrument, based on a contract concluded with the issuer of the financial instruments, as well as with BVB.
“Improving the liquidity is one of our objectives, at Bucharest Stock Exchange. The Issuer’s Market Maker program supports this important direction towards the development of the market and brings benefits for brokers, as well as for issuers, through an increase in valuation and an improvement in the market position for the company. We are glad that as of July 14th, we will have 12 financial instruments included in this program and we expect this number will continue to grow”, said Adrian Tanase, CEO of Bucharest Stock Exchange CEO.
Market maker is a company operating on the capital market, usually a broker, which undertakes the market/trading risk for a certain tier of securities (shares, bonds etc) in order to facilitate the trading of a respective security. Also, the market maker sells and buys securities from its clients, while ensuring the necessary liquidity, maintaining quotes (Bid & Ask) and facilitating deals.