Obligations for Regulated Market Makers according to the Exchange Rules for the FWB – Reminder

Release date: 15 Jul 2020

052/2020 Obligations for Regulated Market Makers according to the Exchange Rules for the FWB – ReminderXetra Circular 052/20

1.  Introduction

This circular is to remind you that in case you are a Regulated Market Maker at Frankfurter Wertpapierbörse (FWB®, the Frankfurt Stock Exchange) you are required to comply with the obligations in accordance with Article 2 of the Commission Delegated Regulation (EU) 2017/578 (for reference please see Xetra circular 091/17). Any violations against these obligations will be handed over to the Sanctions Committee of FWB.

2.  Required action

Since 3 January 2018, all Trading Members at the Frankfurt Stock Exchange who pursue a Market Making strategy in at least one instrument on the trading venue Xetra, must apply to become a Regulated Market Maker according to Article 1 of the Commission Delegated Regulation (EU) 2017/578.The obligations of Regulated Market Makers are incorporated in § 80 of the Exchange Rules for the FWB. Any violations against these obligations will be handed over to the Sanctions Committee of FWB.

3.  Details

During Continuous Trading, the Regulated Market Maker is required to provide firm quotes in at least one instrument during 50 percent of daily trading hours on a monthly average. Firm quotes can also be two-way orders which are posted in the order book and which correspond to the quote parameters regarding their maximum spread and size. 

The relevant quote parameters are determined by the Management Board of the Frankfurt Stock Exchange.

To distinguish quotes from other trading activities, Regulated Market Makers are required to use the M-Account and to flag orders and quotes - that are entered in the context of their Market Making strategy - with the Liquidity Provision Flag. 

Admitted Regulated Market Makers have access to a daily report (51RPTMM001) in order to check their performance and to monitor their compliance with these minimum requirements. The report is available on the Common Report Engine.
 

Further information

Recipients:

All Xetra® Members and Vendors

Target groups:

 

Compliance departments, Nominated Persons, Traders, Technical contacts

Contact:

For functional questions: dagmar.wojcik@deutsche-boerse.com or sales.cashmarket@deutsche-boerse.com; 
for compliance-related questions: regulatory.processing@deutsche-boerse.com

Related circular(s): 

 

Xetra circular 091/17 

Web:

www.xetra.com

Authorised by:

Martin Reck, Dagmar Wojcik (on behalf of the Management Board)


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