The PFTS Introduces Market-Makers

Yesterday the PFTS introduced the institute of market-makers. The PFTS’ qualifications require two-sided quotations and limit bid-ask spreads to a maximum of 5% for stocks in the PFTS’s first tier, 15% for stocks in the PFTS’s second-tier, and 25% for the stocks in the PFTS’s third-tier. Eight participating brokers announced they will support 25 stocks. Concorde Capital is serving as market-maker for Raiffeisen Bank Aval (BAVL: BUY), Motor Sich (MSICH: BUY), and Mariupol Heavy Machinery (MZVM: BUY) (all second-tier) and Alchevsk Iron & Steel (ALMK: BUY) (third-tier). Tom Warner: The stocks that are likely to gain the most from this PFTS initiative to boost liquidity are those such as ALMK, which are significantly undervalued precisely because liquidity has been lacking.