Vienna Stock Exchange News

New market making model enhances trading quality and marketplace attractiveness

(Vienna) As of today, a new market making model will come into effect on the Vienna Stock Exchange. In addition to the existing Market Maker, the "Best Bid and Offer" Market Maker (BBO Market Maker) will be introduced in the top segment prime market. The previous Specialist-role will be replaced. Market makers are trading participants who provide additional liquidity in the order book with binding buy and sell bids and ensure execution at market prices. The new BBO Market Maker commits to offering bids at the best available prices – at the top of the order book. Already three well-known market makers (HRTEU Limited, Tower Research Capital Europe BV and XTX Markets SAS) have decided to participate. The aim is to further narrow the spreads and thus to increase the attractiveness of Austrian shares on the Vienna trading venue. 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.

BBO Market Maker enhances trading quality

"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. Similar liquidity provider models are in place at important European trading venues. Market making is evolving over the years and the Vienna Stock Exchange moves with the times," explains Christoph Boschan, CEO of Wiener Börse AG.

 

Download infographic:

Quotation order book (png-file 60 KB)

 

For further information, please contact:

Julia Resch

Julia Resch

Head of Corporate Communications & Marketing, Spokesperson

julia.resch(a)wienerboerse.at
+43 1 531 65-186

Laura Marchler

Laura Marchler

Corporate Communications

laura.marchler(a)wienerboerse.at
+43 1 531 65-153


About the Vienna Stock Exchange

As the main provider of market infrastructure in the region, Wiener Börse AG is the gate to global markets. Operating the stock exchanges in Vienna and Prague, the group offers state-of-the-art systems, information and IT services. Listed companies receive maximum liquidity and investors benefit from fast and cost-effective trading by the market leader. Wiener Börse AG also collects and distributes stock market data and calculates the most important indices of the region. Because of this unique know-how the national stock exchanges in Budapest, Ljubljana and Zagreb trust its IT services. Additionally, the group holds stakes in energy exchanges and clearing houses. 

Exclusion of Liability

This press release may contain certain forward-looking statements and forecasts that are based on assumptions current made at the time of publication of this press release. We do not assume any liability for these forward-looking statements materializing. Furthermore, we would like to explicitly point out that this press release cannot serve as a basis for investment decisions and may not be construed as a solicitation to buy or a recommendation to invest by Wiener Börse AG. No liability is assumed for the information given in this press release.