Answer 18

Recital 7 of RTS 27 sets out a broad definition for 'other liquidity provider'. It says: "other liquidity providers should include firms that hold themselves out as being willing to deal on own account, and which provide liquidity as part of their normal business activity, whether or not they have formal agreements in place or commit to providing liquidity on a continuous basis".

The definition under Recital 7 indicates that other liquidity providers include firms that act similarly to market makers whereby they deal on own account and provide liquidity to other market participants on an on-going basis, however do not necessarily have formal agreements in place for this activity. Accordingly, a liquidity provider may not commit to providing prices in an instrument under all market conditions.

The definition gives flexibility for ESMA and national competent authorities to determine when a firm is

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