> For the complete documentation index, see [llms.txt](https://initiativ.gitbook.io/initiativ/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://initiativ.gitbook.io/initiativ/mm_internal/5.-market-making-programme.md).

# 5. Market Making Programme

The Market Making Programme supports liquidity, price discovery and orderly trading, particularly in the early stages of a market or in periods of thin participation. Market Makers provide continuous two-way prices and depth across the Exchange’s mechanisms; the programme underpins liquidity but is not itself a route to enter a trade (Section 4.0). Participation is voluntary and open only to Members admitted to the Market Maker role (Section 2), who must meet the operational and technical standards the role requires, including stable connectivity and the ability to update quotes in real time.

The programme will be governed by a Market Making Agreement (MMA) between the Exchange and each Market Maker. No MMA is in place yet; its structure is intended to be developed together with Market Makers, so that obligations and reward are calibrated to the outcomes the Exchange wants to encourage rather than to generic activity.

Standard commitment metrics such as quoting presence, maximum spreads, minimum quote size and minimum quoted volume are a starting point, but a presence figure averaged across all hours can be met while a Market Maker withdraws in exactly the volatile conditions where liquidity matters most. The more informative measures are therefore conditioned on stressed sessions:

* Presence during high-volatility windows
* A hard ceiling on the quoted spread when the market is moving rather than an all-session average
* Fill rate on orders arriving in those windows

Reward is likewise designed as a combination of levers rather than a single spread-based payment:

* Commitment-linked retainers
* A portion of the retainer placed at risk against the stress obligations
* Performance bonuses for exceeding them
* Revenue-linked components

These can be combined so that a Market Maker’s return grows with the Exchange’s success and the two sides’ incentives are aligned. The detailed metrics, reward structure and any tiering are set through the MMA and the Exchange’s pricing work (Section 9), and are not reproduced here.

Market Makers contribute across more than the order book:

* **Order book:** They maintain firm two-way quotes in their designated instruments using the standard order types.
* **RFQ:** They act as responders, returning firm quotes in competition (Section 4.2).
* **Trade Scheduler:** Behind the Trade Scheduler they take the residual imbalance so that all validated TAS orders execute in full (Section 4.4).

The precise absorption commitment is defined in the MMA, not in this section.

Market Makers receive no preferential treatment in execution: their orders and quotes are subject to the same price-time priority as any other participant, and the Exchange gives no advance information or selective data access (Section 6). Access is non-discriminatory, with all Market Makers operating under comparable terms, and the Exchange provides performance feedback on quoting uptime, spread compliance and volume contribution.

The Exchange may adjust programme parameters over time to keep commitments aligned with market conditions and regulatory expectations, on a transparent and non-discriminatory basis.

Fee treatment for Market Makers, including any rebates, incentives and tier benefits, is set with the rest of the Exchange’s pricing in Section 9.