A liquidity provider is distinguished by the fact that it acts under a contract with Euronext initiated at an issuer's request, rather than on its own account. Unlike a market maker, it uses resources allocated by the issuer. For example, the liquidity provider must quote prices during normal auction phases and the main session, with maximum spreads of 5% or 0.25 euros, and minimum sizes of 5,000 euros.

The maximum spread allowed for a liquidity provider on Euronext is 5% or 0.25 euros. This obligation is one of the conditions the provider must meet to benefit from trading fee exemptions. For example, if a share price is 10 euros, the spread must not exceed 0.25 euros or 5% of the price.

The fundamental characteristic distinguishing a market maker is its commitment of proprietary capital. Under Article 4(1)(7) of MiFID II, a market maker trades on own account by buying and selling financial instruments with its own funds, unlike liquidity providers and listing sponsors who act on behalf of the issuer. For example, a market maker displays bid and ask prices from which it commits to buy or sell with its own funds, which is not the case for other actors.

The listing sponsor status offers a presumption of legitimacy protecting against market manipulation accusations. This protection is granted because the listing sponsor operates within the strict framework defined by the AMF, with precise limits on volumes and spreads. For example, a listing sponsor cannot exceed a 2% spread limit for illiquid securities without risking sanctions.

Obligations vary by market actor. Market makers must comply with minimum presence and maximum spread obligations. Liquidity providers have similar obligations but differ through their contract with Euronext. Listing sponsors must comply with AMF-set limits. For example, a market maker must be present 50% of the time on Euronext, while a liquidity provider must quote during 80% of the time.

True. Market makers on Euronext must comply with maximum spreads defined by instrument type. For example, for liquid equities under MiFID II, the maximum spread is set at 2%. This obligation is one of the conditions market makers must meet to maintain their status. For instance, a market maker cannot display a spread above this threshold without risking sanctions.

A market maker is a person who continuously operates on financial markets, ready to trade on own account by buying and selling financial instruments against their proprietary capital at prices they define. For example, on Euronext, market makers must comply with minimum presence obligations of 50% of continuous trading hours, maximum spreads defined by instrument type, and minimum displayed order sizes generally of 5,000 euros.

False. A listing sponsor only intervenes under a contract between an issuer and an investment services provider licensed by the AMF. This contract aims to improve the liquidity and regularity of a security's quotations. Over 440 French companies have such a contract, showing that this contractual relationship is essential for identifying a listing sponsor.