Appendix B to Market Maker Agreement Market Maker Commitment in Swedish Weekly Options for qualifying subclasses

Transcription

1 OBLIGATIONS FOR MARKET MAKER COMMITMENT IN SWEDISH WEEKLY OPTIONS FOR QUALIFYING SUBCLASSES 1. Nrmal market cnditins Cntinuus quting: The MM shall during the cntinuus trading phase cntinuusly prvide bid and ask prices: during nt less than eighty per cent (80%), as a ttal fr all underlying instruments, f the Exchange s Nrmal trading hurs per calendar mnth, excluding Stressed Market cnditins with a minimum f fifty per cent (50%) per underlying instrument f the Exchange s Nrmal trading hurs per trading day, including Stressed Market cnditins and including days where a free day is used in the belw stated number f underlying instruments, expiratin weeks and instrument Series with the belw stated maximum spreads. Request-Fr-Qute in Tailr-Made Cmbinatins (hereinafter referred t as TMC ): The MM is required t respnd t fifty per cent (50%) f the ttal number f qute requests per calendar mnth and underlying instrument by prviding bid and ask prices in accrdance with the fllwing: Respnd t incming TMC requests with a respnse time f maximum twenty (20) secnds with the belw stated maximum spreads. Hlding time hld a qute fr twenty 20 secnds. If a TMC qute is partially r fully traded, the bligatin fr the required hlding time fr the specific TMC is deemed t be fulfilled. If the same strategy is re-requested after the twenty (20) secnd hlding time, a new qute shall be entered and again held fr twenty (20) secnds. Limitatins: A flr is applied where the bligatins fr a mnth per underlying instrument are deemed t be met if ten (10) r less qute requests were bserved during the mnth. A per mnth and underlying instrument cap is applied where a maximum f 100 qute requests are cunted f which fifty per cent (50%) must be answered. Fr OMXS30 the cap is 200 qute requests. All instrument Series included in the TMC shall be regarded as being under the mnitring fr the purpse f determining the effective cmpliance f the MM s bligatin t cntinuusly prvide bid and ask prices regarding cntinuus quting. Instrument Series where n bid is required fr cntinuus quting are exempted. Number f underlying instruments: The MM shall in its undertaking include underlying instruments chsen by the MM Number f Expiratin Weeks: The MM shall prvide qutes in all Expiratin Weeks. September PAGE 1 (5)

2 Number f instrument Series Index Weekly ptins: Fr instrument Series with expiratin day within tw (2) weeks, the MM shall prvide qutes in sixteen (16) instrument Series per Expiratin Week fr the selected underlying instruments. The MM undertakes t qute pursuant t the fllwing: eight (8) call ptin instrument Series, eight (8) put ptin instrument Series. The ptin instrument Series that shall be quted fr each term are the instrument Series which is at-the-mney, the tw instrument Series which are clsest t being in-the-mney, and the five instrument Series which are clsest t being ut-f-the-mney. In cases where instrument Series are nt available fr trading accrding t the abve, the eight instrument Series nearest at-the-mney shall be quted fr each term. Fr all ther instrument Series, the MM shall prvide qutes in twenty-six (26) instrument Series per Expiratin Week fr the selected underlying instruments. The MM undertakes t qute pursuant t the fllwing: thirteen (13) call ptin instrument Series, thirteen (13) put ptin instrument Series. The ptin instrument Series that shall be quted fr each term are the instrument Series which is at-the-mney, the fur instrument Series which are clsest t being inthe-mney, and the eight instrument Series which are clsest t being ut-f-the-mney. In cases where instrument Series are nt available fr trading accrding t the abve, the thirteen instrument Series nearest at-the-mney shall be quted fr each term. Number f instrument Series Single Stck Weekly Optins: The MM shall prvide qutes in ten (10) instrument Series per Expiratin Week fr the selected underlying instruments. The MM undertakes t qute pursuant t the fllwing: five (5) call ptin instrument Series, five (5) put ptin instrument Series. The ptin instrument Series that shall be quted fr each term are the instrument Series which is at-the-mney, the ne instrument Series which are clsest t being in-the-mney, and the three instrument Series which are clsest t being ut-f-the-mney. In cases where instrument Series are nt available fr trading accrding t the abve, the seven instrument Series nearest at-the-mney shall be quted fr each term. On the Expiratin Day fr a certain instrument Series, the quting bligatin in accrdance with the preceding paragraphs shall relate t instrument Series f all listed Expiratin Weeks with the shrtest Term, but withut regard t the instrument Series which has the current day as the Expiratin Day. Number f Cntracts: The required number f Cntracts t be quted in an underlying instrument is specified in the at each time applicable classificatin f the underlying instruments Appendix A, as determined by the Exchange. The MM is aware that this classificatin is reviewed and updated by the Exchange in January and July each year. Spread requirements: An underlying in ptins table 1 can be temprarily mved t ptins table 2 due t medium term cnstraints in quting accrding t nrmal spread requirements. These temprary changes can be impsed with shrter ntice, at the earliest as f the next trading day, than the required 30 days in advance ntificatin regarding changes t the bligatins in this Appendix. Spread requirements table 1, ptins Bid price Max spread All underlying except underlying in table 2 and FINGB < < < < < < September PAGE 2 (5)

3 < Spread requirements table 2, ptins < < < < < < < Spread requirements, Fingerprint Cards B (FINGB): Spread requirements, ptins Bid price Max spread < < < < < < < Spread requirements, Request-Fr-Qute in TMC: Table 1 > ABB SAND < ALFA SCAB < ASSAB SEBA < ATCOA SECUB < CAST SHBA < ELUXB SKAB < ERICB SKFB < HMB SSABA > HUSQB STER INVEB SWEDA NDA TEL2B NOKIA TLSN OMXS30 VOLVB Table 2 > AXFO INDUC < BETSB KINB < BILL LUMI < BOLI LUPE < EKTAB SOBI < FINGB SWMA < GETIB TRELB September PAGE 3 (5)

4 < HEXB XACT > ICA Table 3 > ALIV < AZN < HOLMB < IJ < JM < MIC < NCC < SAAB > Cmplement t the spread tables abve: N bid price is required frm the MM in rder t fulfil the spread requirements if the ask price frm the Market Maker is at SEK 0.30 r lwer. 2. Stressed Market cnditins The Exchange has the right t declare Stressed Market cnditins in times f stressed market. The Exchange cnsiders Stressed Market cnditins t apply autmatically and immediately after a vlatility interruptin triggered by a Circuit Breaker as defined in the Genium INET Market Mdel dcument fr Nrdic Equity Derivatives. The Exchange may n its wn initiative decide that Stressed Market cnditins shuld apply in certain ther situatins where s required t ensure the integrity f the market r in ther extrardinary situatins where extreme vlatility culd be expected. Stressed Market cnditins can be applied fr: all underlying Instruments; r ne r several underlying Instruments. The MM is entitled t an additinal rebate in accrdance with the Market Maker Fee List fr quting during Stressed Market cnditins. Cntinuus quting: T be entitled t the additinal rebate, the MM shall during the Stressed Market cnditin cntinuusly prvide bid and ask prices: during nt less than eighty per cent (80%) f the stressed market cnditin phase in the abve stated number f underlying instruments, expiratin weeks and instrument Series. Spread requirements will fllw the spread tables abve times 2. Request-Fr-Qute in TMC: The MM is nt bliged t respnd t qute requests during Stressed Market cnditins. 3. Exceptinal Circumstances Exceptinal Circumstances is a market cnditin declared by the Exchange due t an extreme market situatin as defined in Article 3 f RTS 8 supplementing MiFID II. See als sectin 2.7 f the Exchange Rules and the Genium INET Market Mdel dcument fr Nrdic Equity Derivatives fr further details. September PAGE 4 (5)

5 Exceptinal Circumstances can be applied fr: a specific Market Maker; all Market Makers; r ne r several market segments. During Exceptinal Circumstances temprary deviatins frm the bligatins stated in this Appendix is allwed. The Exceptinal Circumstances will be treated n a case by case basis. During Exceptinal Circumstances quting bligatins are temprarily disabled. 4. Miscellaneus Validity: The bligatins defined in this Appendix are valid until further ntice. Market Makers shall be ntified 30 days in advance regarding changes t the bligatins in this Appendix. Instruments: The Exchange shall biannually, in January and July, determine the applicable classificatin f Swedish shares and share indices (hereinafter jintly referred t as underlying instruments ) and the required number f cntracts t be quted fr each underlying instrument in questin. Mnitring: The Exchange shall mnitr the MM s effective cmpliance with the requirements in this Appendix and determine if the MM shall be entitled t Market Maker fees in accrdance with the Market Maker Fee List based n the abve required number f Cntracts t be quted fr each underlying instrument. Recmmencement f bligatins: The MM shall resume trading as sn as pssible in cnjunctin with the recmmencement f trading after Suspensin f Trading, an extrardinary clsure r after a perid with Exceptinal Circumstances and fllwing Exchange Transactins. Perid f validity f qutes: The qutes are valid up t the making f a new qute with respect t the same instrument Series r until the revcatin which is immediately fllwed by a new qute regarding the same instrument Series. Free days: The MM is entitled t use up t twenty (20) free days per calendar year and underlying instrument n which days the MM des nt have t fulfil the quting bligatins as specified in this Appendix, excluding the bligatin t during the cntinuus trading phase cntinuusly prvide bid and ask with a minimum f fifty per cent (50%) per underlying instrument f the Exchange s nrmal trading hurs per trading day. In rder t be able t use a free day, the Exchange must be ntified befre 09:20 CET the day which the MM intends t use as a free day. September PAGE 5 (5)