Liquidity Provider Programmes
In 2006, a new market model was implemented for the Belgian options market. This improved market model provided a new Liquidity Provider program and was based on the Amsterdam ELPS scheme. On 13 Sep 2010, a full harmonization of the Rules, functionalities, corporate action handling, and operational procedures for the NYSE Euronext Amsterdam and Brussels Derivatives Markets came into effect (Brussels notice BRU 10-01).
ELPS Brussels is characterized by the presence of three types of Liquidity Providers: Primary Market Makers (PMMs), Extra Competitive Market Makers (CMX) and Competitive Market Makers (CMMs). PMMs have obligations across all series in all assigned maturities within the classes to which they have been assigned. CMXs and CMMs have obligations in only a limited number of series (CMX 30%, CMM 10%), in the Near The Money Area, in each class to which they have been assigned.
PMMs, CMXs and CMMs are selected for a specific class by meeting several obligation levels. During the selection procedure, applicants are invited to subscribe for a position of PMM, CMX or CMM in the relevant class. NYSE Liffe then evaluates the subscriptions and appoints the required number of PMMs, CMXs and CMMs based on obligations and priority rules. In principle, ELPS Brussels contracts last for one year, and are re-selected every year (October).
The table below lists documents relating to the Liquidity Provider scheme in Brussels.