Romania: Market making services contract signed by Electrica and Wood&Co, SEE Energy News
Romanian electricity distributor and supplier Electrica has concluded a market making services contract with Wood & Co, starting with 30 September 2020 in order to support the liquidity of its listed shares thus assuring a good liquidity in the stock market.
Although the terms of the contract have not been published, the liquidity assurance service is usually provided by a private player through transactions in its own name. Thus, the securities may become more attractive to investors, due to increased liquidity and a higher trading volume, while the clauses may also include protection against stock market shocks, by the fact that the shares are protected so as not to fall below a certain value.
Electrica’s titles have been rising since mid-June, following a sharp drop in March in the midst of the coronavirus pandemic crisis.
The securities registered a minimum quotation of 1.62 euros in March, after which they had a sustained upward trend, up to a maximum of 2.43 euros, in September (an increase of almost 50 %).