Liquidity Provider is one of nine Exchange participant classes.
The Exchange refers to this class as GX-LP. It sits in the Trading & Liquidity group and carries the obligations set out below in addition to the requirements common to every participant.
Admission test: Trading Member standing, demonstrated capacity to quote both sides through a full session, and a signed liquidity provision schedule for each assigned contract.
Exchange Designation
Class Group
Public Register Entry
Rule Change Notice
Obligations of the Class
What it does
A Liquidity Provider undertakes to show two-sided prices in a named contract for a minimum share of each session, within a maximum spread and above a minimum size. In young corridors this is the difference between a market and a noticeboard.
The obligation is measured
Presence, spread and size are measured session by session and published to the member in a monthly performance record. Persistent failure to meet the schedule ends the appointment.
What it receives
Fee relief on assigned contracts and, where the Exchange judges it necessary to open a corridor, a fixed support payment disclosed in the corridor notice.
Conflict management
A Liquidity Provider quoting a contract may not simultaneously act as Assay & Assurance Agent for consignments deliverable into it.
Standing
Published
Admission, restriction, suspension and withdrawal for this class are published on the participant register with the effective date and the rulebook section relied on.
Reviewed annually
Standing is reviewed every year against the admission test, and at any time on a material change in the participant's circumstances.
Appealable
Adverse decisions may be referred to the Exchange review panel, which sits independently of the desk that made the original determination.
