Liquidity providing refers to the actions taken by market participants or entities to enhance the liquidity of a financial market. Liquidity, in this context, is the degree to which an asset or security can be quickly bought or sold in the market without causing a significant impact on its price.

A Liquidity Provider (LP) contracts with the Listed Company to actively participate in trading by maintaining a continuous presence of buy and sell orders. This can involve specific strategies, algorithmic trading, and other activities aimed at facilitating the buying and selling of financial instruments while minimizing price disruption. Issuing companies appoint liquidity providers to facilitate trading and support the liquidity of their specific financial instruments.