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Market makers

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[$] Facebook Glitches to Cost Market Makers
Wall Street Journal  May 25  Comment 
Trading glitches on the Nasdaq Stock Market during Facebook Inc.'s shares' rocky debut may cost Wall Street about $100 million, analysts said.
Facebook's market maker losses may top $115 million: sources
Reuters  May 25  Comment 
Facebook market makers' losses at least $100 million
Reuters  May 25  Comment 
Facebook market makers' losses total at least $100 mln
Reuters  May 24  Comment 
REUTERS - Claims by four of Wall Street's main market makers against Nasdaq over Facebook's botched IPO are likely to exceed $100 million, as they and other traders continue to deal with thousands of problems with customer orders.
Market Maker, Mutual Fund Salesman
Forbes  May 15  Comment 
For exchange-traded funds  in the U.S., a funny thing happened on the way to innovation.
Market making scheme: BSE tweaks norms for derivatives
The Hindu Business Line  Apr 30  Comment 
The Bombay Stock Exchange has revised its market-making scheme. The revised size and spread of the quotes provided for contracts under the Liquidity Enhancement Incentive...
NASDAQ Seeks To Pay Market Makers In Exchange For Improved ETF Trade & Quote Performance
Gold Stocks Today  Apr 14  Comment 
Jackie Noblett, writing for Ignites.com, spotted a recent SEC filing by Nasdaq that proposes a “Market Quality Program” (MQP) where, “an ETF sponsor would pay an annual fee of $50,000 to $100,000 per ETF to Nasdaq. The fee, which ...
Invitation To NASDAQ OMX Commodities Carbon Futures Market Maker Program
Mondo Visione  Mar 14  Comment 
NASDAQ OMX Commodities Europe hereby invites eligible participants to apply for market maker status in its carbon futures market maker program. Obligations Applicable products and market maker spread:  EUA futures Dec 12-14...
Tibra Joins ISE As A Competitive Market Maker
Mondo Visione  Mar 12  Comment 
The International Securities Exchange (ISE) announced that Tibra Trading America LLC (Tibra) has become a Competitive Market Maker (CMM) on ISE's options exchange. Tibra is the most recent market maker to join ISE under its new CMM trading rights...
Kelleher Says Volcker Rule Misperceives How Market Makers Profit
BusinessWeek  Feb 15  Comment 
Morgan Stanley, owner of the world’s largest brokerage, said the Volcker rule suffers from a misunderstanding of how banks earn returns from market making and threatens to curb profitable services.
BATS Exchange Receives SEC Approval For Innovative Market Maker Program - Competitive Liquidity Provider Program Designed To Incentivize Active Market Making For BATS-Listed Issuers
Mondo Visione  Feb 6  Comment 
BATS Global Markets, a global operator of stock and options markets, today announced it had received approval from the U.S. Securities and Exchange Commission (SEC) to implement its new Competitive Liquidity Provider (CLP) program. “As we...




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Market makers are individuals or representatives of firms whose function is to ensure liquidity in the securities markets, through bids and offers to the public in the absence of an offer from a counterparty. When traders place an order to buy a certain security which nobody is queuing to sell, market makers sell that security from their own portfolio or reserve. Similarly, they will buy a security in absence of other buyers.

In doing so, market orders are continuously moving, eradicating sudden surges and ditches due to buying and selling imbalance. Market makers earn profits through a spread between their buying price (bid) and their selling price (ask). The ask is always higher than the bid, allowing the market maker to profit from their inventory.

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