MX to launch market making for overnight trading

The Bourse de Montréal Inc. (MX) is launching a new market making program for its overnight trading sessions.

The Bourse issued a request for proposal seeking firms to act as market makers for its flagship futures products — including its major interest rate and equity index derivatives — in the exchange’s extended trading hours.

The new market making programs are being launched as part of the exchange’s ongoing efforts to “promote and foster market liquidity,” it said.

The new initiative follows its decision to extend trading hours, first to align with European markets, and later to match Asian markets as well.

“This move increased opportunities to hedge risk and optimize portfolios, and helped to enhance price transparency through frictionless trading on a global marketplace,” it said.

The deadline for responding to the RFP is Aug. 31.

The bourse is aiming to select the market makers by Sept. 16, with the market making program due to launch on Oct. 3.