RSE to launch Liquidity Provider Program

30.09.2004 RIG

Starting with October 1, 2004, the Riga Stock Exchange is launching the Liquidity Provider (Market maker) Program. The purpose is to improve the liquidity and to enhance the trading efficiency in the Riga market.

The liquidity providers will give extra assurance to the investors, since their task is to be ready to execute their order at any time. The more market makers for the company, the higher the liquidity.

Liquidity providers are the RSE members that have agreed to maintain the supply and demand in specified shares in the continuous market segment, within a certain price spread.

Market Maker status is assigned to a Member by the RSE. To become a Market Maker, the member has to sign an Agreement with the RSE and to choose at least six companies listed on the RSE Official of Second list, provided that at least two are from Official list and at least two are from Second list. A Market Maker is to maintain, on a continuous basis, the quotes at least 85% of the automated trading time. The RSE also has specified the minimum number of shares to be maintained by the market maker in the order book, and has put a limit to price spread (between the buy and sell price) of 4% or LVL 0.01.

The companies chosen by market makers and the minimum amounts:

Additional information:
Krista Grīntāle, Head of Corporate Communication, +371 721 2431
Riga Stock Exchange