A market maker is a legal entity, duly registered at B3, committed to submiting spreads (bids and offers) regularly and continuously during the trading session, promoting the liquidity of securities, facilitating business and mitigating artificial movements in prices.
Each market maker can register to act in more than one security, and may exercise its activity independently or hired by the issuer of the security, parent companies, subsidiaries or affiliates of the issuer, or by any securities holders who have interest in making the market for their own securities.
Market makers must act on a daily basis while respecting the activity parameters (minimum amount, maximum spread and percentage of activity in trading session). However, if the market presents an atypical behavior, with fluctuations outside the regular standards (arising from economic, catastrophic or even some positive and totally unexpected fact that may cause an excessive change in the securities price), the market maker may have, with B3’s consensus, its parameters changed or be released from its obligations during the trading session.
The market maker must follow obligations that encompass, in particular, their activities. Aspects such as minimum quantity, spread and percentage of activity in the trading session.
The minimum amount of each offer is defined by B3, according to asset/derivative characteristics and market dynamics.
The market maker’s prices for purchase and sale offerings shall respect a maximum interval (usually called spread), which is defined according to each active/derivative.
The market maker’s offers compete on equal terms with the other market offerings, and the closing of business shall obey the criteria of best price and chronological registration order.
In order to encourage the market maker’s activity, B3 may grant cost advantages in negotiations carried out by such party, such as exemptions in emoluments and trading fees.