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Home > Member firms
Liquidity providers
Purpose of liquidity providers

The purpose of liquidity providers is chiefly to increase liquidity on the capital market. The LJSE recognizes as one of its key tasks enabling investors to enter into and withdraw from investments at a fair market price, and the system of liquidity providers can help achieve this. Liquidity providers ensure market depth and reduce the bid-ask spread.

When being assigned a liquidity provider, a security that was previously traded in the auction trading method is moved over into continuous trading.

Liquidity providers are set up for all segments of securities.

Basic role

A liquidity provider is a LJSE member firm that ensures liquidity for a given security. It achieves this by providing obligatory daily limit orders to purchase and sell this security on the market within a certain bid-ask spread, and by concluding trades on the basis of these orders, in its own name and for its own account.

Supporting activities

In addition to their basic role, liquidity providers can also offer listed companies other services. Such 'supporting' activities are not a mandatory part of being a liquidity provider and are subject to an agreement between the liquidity provider and the issuer. They include research papers, analyses, provision of trading data and giving presentations, and can enhance the issuers' security's profile and contribute to its quality.

Effects of liquidity providers

The LJSE aims to achieve the following effects through liquidity providers:

  • decrease the bid-ask spread,
  • increase market depth,
  • reduce price volatility,
  • increase traded volumes.
Becoming a liquidity provider

A potential liquidity provider is any LJSE member firm. It must apply for the liquidity provider status with the LJSE and meet the requisite criteria. The liquidity provider status is granted for a minimum period of one year. A single security may have a maximum of three liquidity providers (five during the transitional period).

To become a liquidity provider for a security, a member firm enters into a special agreement with the issuer. The LJSE grants the liquidity provider status if the member firm committs to provide at least the minimum requirements given in the Instructions for Liquidity Providers. On the other hand, member firms may also decide to be liquidity providers for a security without any prior agreement with the issuer.

Current liquidity providers

Securities:

  • ZVTG
  • KRKG
  • PETG

Issuers:

  • Zavarovalnica Triglav d.d.
  • Krka, tovarna zdravil, d.d., Novo mesto
  • Petrol d.d., Ljubljana

Liquidity provider: Interkapital vrijednosni papiri d.o.o.

Period: from 1. 2. 2019 (KRKG and ZVTG) and from 1. 3. 2019 (PETG)

Minimum quote size:

  • ZVTG: 400 lots
  • KRKG: 200 lots
  • PETG: 50 lots

 

 

 

 

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DATA
INDEX SBITOP on Mar 21. 2019 at 15:30
Value Change in %
875.50 -0.03%

PRIME MARKET SHARES on Mar 21. 2019 at 15:30
Symbol Value
(EUR)
Change in %
IEKG 2.4600 -7.52%
KRKG 58.8000 1.03%
LKPG 27.3000 0.37%
MELR 22.2000 0.00%
NLBR 62.6000 0.32%
PETG 344.0000 -0.86%
POSR 17.1000 -0.58%
TLSG 65.0000 0.00%
ZVTG 34.6000 -0.57%

TOP 3 GAINERS / DECLINERS on Mar 21. 2019 at 15:30
Symbol Value
(EUR)
Change in %
Gains
KRKG 58.8000 1.03%
SALR 645.0000 0.78%
LKPG 27.3000 0.37%
 
Declines
IEKG 2.4600 -7.52%
SKDR 620.0000 -3.12%
PETG 344.0000 -0.86%