Market makers

RECENT NEWS
Euromoney  Nov 10  Comment 
Despite struggling to make a mark on corporate FX, non-bank market makers are confident they play a vital role in improving access to liquidity.
Flightglobal  Oct 4  Comment 
Emirates will be the "market maker" for the Airbus A380, the Gulf carrier's senior vice-president of corporate treasury Nirmal Govindadas argued today.
Mondo Visione  Sep 29  Comment 
The last 20 years has seen remarkable change in the equity markets, but not everyone is pleased with the evolution. According to TABB Group’s latest research, “Myth Busting and the New Market Maker: Liquidity, Speed, and Risk in an Age of...
Euromoney  Jun 9  Comment 
Curbs on risk-based activities and internalization of client trades are pushing growth in non-bank market making in Asia, but such activity is not without challenges.
Mondo Visione  May 31  Comment 
Athens-based investment firm, Piraeus Securities (Piraeus), has gone live with the latest version of Horizon’s trading platform as part of the firm’s continued commitment to quality and innovation in its market making activities. This...
Mondo Visione  May 26  Comment 
Profit & Loss readers cast record numbers of votes for their preferred market makers and service providers this year, and award winners were on hand to collect trophies at the Profit & Loss Hall of Fame & FoXy’s Readers’ Choice Awards luncheon...
Mondo Visione  May 25  Comment 
MIAX has received approval to amend Rule 612, Aggregate Risk Manager to allow a Market Maker to establish an Allowable Engagement Percentage at any percentage level equal to or greater than 1% for an option class in which such Market Maker is...




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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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