Knowledge Base

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Questions

What specific criterion identifies a liquidity provider under the Euronext programme?

It uses its own capital for transactions
It acts under a contract with Euronext initiated at an issuer's request
It must be present on the market 100% of the time
It is subject to the same obligations as market makers

What is the maximum spread allowed for a liquidity provider on Euronext?

1%
2%
5% or 0.25 euros
10%

What is the fundamental characteristic that distinguishes a market maker from other market actors?

It acts on behalf of the issuer
It uses its own capital for transactions
It only intervenes during specific opening hours
It must comply with maximum spreads of 2%

What is distinctive about the listing sponsor's status in terms of protection against market manipulation accusations?

It is subject to stricter controls than other actors
It benefits from a presumption of legitimacy protecting against manipulation accusations
It can intervene without a contract with the issuer
It must always use its own capital

Categorize items by dragging them to the appropriate zones

Items to categorize:

Minimum presence of 50% of continuous trading hours
Maximum spreads of 5% or 0.25 euros
Daily volume caps as a percentage of average volume
Categories:

Market maker

Liquidity provider

Listing sponsor

Market makers on Euronext must comply with maximum spreads defined by instrument type.

True
False

Definition of a market maker under MiFID II

Click to see answer

A listing sponsor can intervene without a contract with the issuer.

True
False