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On 18 September Euronext.liffe is introducing a new market making role in the Paris equity derivatives market to meet growing demand for French equity options.
The new Primary Liquidity Provider role (PLP) will be focused on the 12 most actively traded French equity options1 and will complement the liquidity provided by the existing market makers.
Following the 33% growth this year in French Equity Options2, the new market makers will provide a high quality market for the growing number of funds, professionals and retail traders who are entering the market.
The new role will provide:
- Continuous display of prices for all series, covering all maturities listed up to 1 year out
- Increased competitiveness, providing narrower, more stable, bid-ask spreads
- Attractive prices and easier adjustment of positions
Four market makers with international reach will act as Primary Liquidity Providers:
- Hardcastle Trading AG
- Optiver V.O.F
- Saen Options
- Wolverine Trading UK Ltd
This is one of a series of initiatives to develop the French options market which includes the recently announced “Futures and Options Partners” program where Barclays, B*Capital and Bourse Direct will provide access to French retail users.
The introduction of the new role is part of our strategy to implement the highly successful market model currently running in Amsterdam and Brussels3 where bidask spreads are on permanent display for all traded option series. Since its introduction on these markets, there has been significant growth in volumes.
“With the support of major market makers and retail and institutional brokers, the French options market has all it takes to attract further individual investors and institutional business and continue its encouraging growth," notes Philippe Hajali, Equity and Index Derivatives Director, Euronext.liffe.
1 Alcatel, Axa, BNP Paribas, Carrefour, Crédit Agricole, France Télécom, Sanofi-Aventis, Société Générale,
STMicroelectronics, Suez, Total, Vivendi
2 From January to August 2006, volume in French American style options is up 33% compared to 2005
3 New market model in Amsterdam since 24 November 2004 and in Brussels since 23 January 2006
