FAQ

1. What is market making?

Market makers promote steady trading and improve liquidity in the respective market by publishing binding buy and sell quotes. Market makers can change the quotes placed by them at any time during continuous quotation. Upon a request to that end by a licensed trading participant the market maker is obliged to sell or to buy at his published quotes.

2. Who are the market makers?

The current status is provided on the website of EEX under Participants.

3. What is a quote?

Quotes are binding buy and sell rates which are published by a market maker. Unlike orders, which only provide a buy or sell quote, quotes always provide buy and sell quotes.

4. Do market makers receive remunerations?

Depending on the fulfilment of their obligations to quote market makers receive a remuneration.

5. What are the market makers' obligations to quote?

Obligations to quote describe the conditions under which the market makers place binding buy and sell quotes. Depending on the product or the contract these may differ. Among these conditions there are conditions regarding time, quantity and prices. Conditions regarding time specify the period during which a quote has to be placed, conditions regarding quantities describe the required bid quantity and conditions regarding the price define the required difference between the buy and sell quote (spread). This means in order to fulfil his obligation to quote a market maker for example has to quote for 80 per cent of the trading hours with a minimum number of 25 contracts and a maximum spread of 40 ticks (EUR 0.40) in one contract.

6. What is a fast market situation?

A so-called fast market situation is deemed to exist in case the prices for the product or the contract concerned change quickly and with high fluctuations within a very short period of time. Special obligations to quote apply with regard to fast market situations.