Stock Options and Index Options Liquidity Provider Programmes
The objective of the Liquidity Provider Programme is to improve on-screen price quality in order to build order flow in the Central Order Book. Three Liquidity Provider roles are in place:
Primary Liquidity Provider (PLP)
The PLP Liquidity Provider role provides continuous quotes in a pre-defined number of In The Money and Out of The Money series (1 or 2 ITM and 4 or 8 OTM) and is intended to provide the Paris equity options market with increased quotes to further enhance liquidity.
Competitive Market Maker (CMM)
The CMM Liquidity Provider role ensures that in all Paris individual equity options there are continuous quotes in a range of series in the Near The Money Area.
Responding Market Makers (RMMs)
RMMs respond to RFQs at specified maximum spreads and minimum quote sizes. RMMs must respond to RFQs on equity options on all the expiries up to a horizon of one year on all series.
CAC40 Dividend Index Futures Primary Market Making Program (PMM):
The PMM program aims to provide transparency and liquidity such that investors are able to observe bids and offers and deal in small size regularly at a reasonable bid/offer spread.
FTSE EPRA/NAREIT Index Futures Market Making Program:
The market makers have to provide continuous quotes for the first and second maturity.