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Re: RealDutch post# 113170

Thursday, 06/22/2017 11:54:09 AM

Thursday, June 22, 2017 11:54:09 AM

Post# of 163716
Market making in Oslo is not the same as on Nasdaq/OTC.

On Nasdaq or OTC, a broker firm just have to inform Finra that they now will make a market in a security more or less, the issuing company has no saying to this.

http://www.investopedia.com/study-guide/series-55/trading-over-counter-and-nasdaq-securities/registering-market-maker/

In Oslo the issuer/company sign a contract with a broker who guarantee liquidity in the stock. Then informs Oslo Börs about the agreement. From what I know, the market maker normally get compensated for the service and are then in a way working for the company. So if the market maker miss behaves, no one will sign a contract with that broker firm to be a market maker again. So Market Makers in Oslo normally have very good reputation and are appreciated by the market.

Here is an agreement both parties must sign for this.

https://www.oslobors.no/ob_eng/obnewsletter/download/608f85cd98dfc5a6dbc9550ed038ea7f/file/file/Markedspleieavtale+engelsk.doc

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