Pursuant to § 19.1a and § 19.1b of the Alternative Trading System Rules, the conditions for an exchange member to start operations as a Market Member in the alternative trading system on GlobalConnect are as follows:

• the exchange member or its representative – KDPW clearing member shall join a fund securing proper settlement of transactions made in the alternative trading system referred to in Article 68 of the Trading Act;
• the exchange member or its representative – KDPW clearing member, respectively, shall make a payment to the guarantee fund referred to above.

The exchange member shall, not later than 2 business days before the start date of business in the alternative trading system on GlobalConnect, provide the Alternative System Organiser with a written statement to the effect that it fulfils the conditions referred to above.

Market makers on GlobalConnect

The mission of market makers is to effectively support the liquidity of trading in financial instruments.

Financial instruments are introduced to trading on GlobalConnect at the request of a market member operating on GlobalConnect who undertakes to perform the tasks of Introducing Market Maker for such instruments.

The Introducing Market Maker may agree that the Alternative Trading System Organiser enters into market making agreements with other market members in relation to the financial instruments for which the Introducing Market Maker performs that function.

All market makers are required to perform their tasks in accordance with the requirements set out in the market making agreement and in accordance with the requirements under the Trading Act, the Alternative Trading System Rules, taking into account Commission Delegated Regulation (EU) 2017/578.

The responsibilities of market makers include in particular the simultaneous placing of buy orders and sell orders for the financial instruments on their own account.

Market makers are required to ensure that their operations, including the broker’s orders they place, comply with the market making requirements including:

1. presence in the order book – i.e., a minimum required period for a market maker to hold orders in the order book during a given trading day, and rules for placing and adjusting orders in the order book to comply with the applicable market making requirements,
2. minimum value of orders – i.e., a minimum value of the market maker’s orders in the order book,
3. maximum spread – i.e., a maximum permitted difference between the lowest limit price in a sell order and the highest limit price in a buy order or the maximum permitted ratio, expressed as a percentage, percentage points or index points, of the difference between the limit price in a sell order and the limit price in a buy order to the limit price in a buy order.

Market makers may not place orders that would result in a transaction where the market maker acts as seller and buyer at the same time.

• Application for determining the date of commencement and the scope of operations of a market member in the alternative trading system on GlobalConnect
• Declaration of fulfilment of the conditions set out in § 19.1 of the ATS Rules