Market Maker Types

There are two different kinds of Market Makers at NASDAQ OMX DM;

• Small Market Maker (Regular/Advanced) 
• Large Market Maker (Regular/Advanced)
 

A small Market Maker undertakes to quote prices in instruments chosen by the MM which gives entitlement to Market Maker fees in relation to the trading of the chosen instruments.
 

A large Market Maker undertakes to quote prices in a number of instruments chosen by both the MM and the exchange. By fulfilling the obligations a large MM is entitled to Market Maker fees for all instruments on the market where the member is MM.
 

Advanced/Regular Market Maker: The difference between an Advanced Market Maker and a Regular Market Maker is the quoting obligations and fee level. Advanced Market Makers has stricter quoting obligations and in return receive an additional rebate on trading fees for Order Book (OB) and Exchange Broker (EB) trades. The Advanced Market Maker model is currently available on the Swedish market.

When a Market Maker Agreement is signed, an appendix needs to be signed for each market (Swedish, Danish, Icelandic, Finnish and Norwegian) where the Member wishes to become a Market Maker.
 

Monthly/Yearly Market Making Fee Model
 

Market Makers in Swedish equity derivatives can choose to follow either a Monthly Market Maker fee model or an Annual Market Maker fee model.

In the monthly Market Maker fee model, the fees charged per contract will be based on accumulated number of traded contracts for the calendar month in question. The different fee levels can be found in the Market Maker Fee List in the Rules and Regulations of NASDAQ OMX Derivatives Markets.

Market Makers who follow the Monthly model, will have the same quoting obligations as Market Makers in the Annual model.