Vienna Stock Exchange Adopts New Market Maker Model

The Wiener Börse AG, operator of the Vienna Stock Exchange, says it is introducing the Best Bid and Offer market maker (BBO market marker) to its exchange.

This is as the exchange disclosed that a new market making model comes into effect on its trading platform on Monday.

With the new model, the previous specialist model, which supplemented the market maker system, will now be replaced.

The BBO market maker will be added to the top segment prime market, the exchange operator said.

Additionally, Wiener disclosed that three prominent market makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term have already decided to participate.

They are Hudson River Trading Limited (HRTEU Ltd), a mathematics and technology company, Tower Research Capital Europe Limited, a subsidiary of the trading and technology company, Tower Research Capital LLC, and XTX Markets, a quantitative-driven electronic market-maker.

Market makers are trading participants who provide additional liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term in the order book with binding buy and sell bids (quotes) that ensure execution at market-driven prices. This action helps to facilitate liquidity and ensure the smooth running of the market.

According to Wiener, its BBO market markers are required to commit to offering bids at the best available prices at the top of the order book.

"The aim is to further narrow the spreads and thus to increase the attractiveness of Austrian shares on the Vienna trading venue," Wiener wrote on its website.

"Both retail and institutional investors benefit from an increase in price quality. Professional trading participants are free to choose the established or the new market making model," the exchange added.

Christoph Boschan, the Chief Executive Officer of Wiener Börse AG, explained that market making is evolving and the Viennese stock exchange “moves with the times.”

"The Vienna Stock Exchange should remain the most attractive marketplace for Austrian equities. Price and order book quality are the decisive factors. In terms of market design, we are following international standards,” Boschan said.

In addition, the CEO noted that similar liquidity provider models were in place at important European trading venues.

The Specialist System

According to Weiner, the Specialist system was designed in part as a supplement to the market maker system by introducing an additional broker function with the aim of increasing liquidity in the market.

The task of the Specialists is to place firm and competitive buy and sell quotes into the system along with the market makers.

Meanwhile, the Commodity Futures Trading Commission (CFTC) recently issued a registration order to futures exchange, FEX Global Pty Ltd, which is licensed by Australia’s Foreign Board of Trade.

The SIX Swiss Exchange, Europe's third-biggest stock exchange, late last month approved Hashdex as a cryptocurrency exchange-traded product issuer.

According to a press release, Hashdex’s entry into Switzerland's crypto valley is to "accelerate the company’s international reach through innovative, regulated, institutional-grade products and services that build a pathway to connect Swiss and European investors to the crypto economy."