Market Making

SWX Europe has rules which govern market making in ETFs on the SWX Europe market.

An ETF Market Maker must fulfil the following obligations:

• Registration with SWX Europe
• Maintain competitive two-way orders of at least EUR 50'000 (or equivalent in another currency) on each side of the order book in each ETF in which the market maker is registered and
• Ensure that its spread is not wider than the parameters agreed between the market maker and SWX Europe.

These market-maker obligations do not apply in certain circumstances, for example when there are materially adverse market conditions. These circumstances are set out in the market-making agreement included in Directive 17: Exchange Traded Funds.