A market maker is an agent who undertakes to maintain buy and sell offers on a regular and continuous basis at a maximum established spread, facilitating share trading and avoiding artificial price swings caused by lack of liquidity
The use of market makers is customary abroad and is becoming increasingly common in Brazil. The Bovespa has constantly encouraged companies to make use of such agents in order to foster share trading and increase liquidity.
In May 2007, Positivo Tecnologia hired UBS Pactual Corretora de Títulos e Valores Mobiliários S.A. as its market maker, in order to promote a better environment for the trading of its shares. This service was provided until April 2009, when the company opted not to renew the agreement.
In July 2010, given the reduction in liquidity in the immediately prior months, Positivo Tecnologia decided once again to hire a market maker, thereby strengthening its commitment to its investors and to the best trading practices. It therefore contracted BTG Pactual Corretora de Títulos e Valores Mobiliários S.A. to begin acting as its market maker as of July 22, 2010. For further details, click here.
|Type of Asset:||Share|
|Minimum Lot per Offer:||5000 shares|
|Standard Lot:||100 shares|
|Market Maker:||BTG Pactual Corretora de Títulos e Valores Mobiliários S.A.|
|Term of Agreement:||Until 09/01/2011, automatically extendable|
|Initiation of Validity of Agreement:||07/20/2010|
|Initiation of Market Maker ‘s Activities:||07/20/2010|