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Version status: Applicable | Document consolidation status: No known changes
Version date: 3 January 2018 - onwards
Version 3 of 3

Article 2 Content of market making agreements

1. The content of a binding written agreement referred to in Article 17(3)(b) and Article 48(2) of Directive 2014/65/EU shall include at least:

(a) the financial instrument or instruments covered by the agreement;

(b) the minimum obligations to be met by the investment firm in terms of presence, size and spread that shall require at least posting firm, simultaneous two-way quotes of comparable size and competitive prices in at least one financial instrument on the trading venue for at least 50 % of daily trading hours of during which continuous trading takes place excluding opening and closing auctions and calculated for each trading day;

(c) where appropriate, the terms of the applicable market making scheme;

(d) the obligations of the investment firm in relation to the resumption of trading after volatility interruptions;

(e) the surveillance, compliance and audit obligations of the investment firm enabling it to monitor its market making activity;

(f) the obligation to flag firm quotes submitted to the trading venue under the market making agreement in order to distinguish those quotes from other order flows;