Market makers

RECENT NEWS
Mondo Visione  3 hrs ago  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...
Mondo Visione  Apr 5  Comment 
Effective from April 1, 2016, Garanti Investment became a market maker in BIST30 Index Options. Upon registration of Garanti Investment as a market maker, the number of market makers in BIST30 Index Options, which is a part of the revenue...
Mondo Visione  Mar 29  Comment 
Please refer to MIAX Regulatory Circular 2016-12 for the current Opening and Intra-day Valid and Priority Quote Width Requirements for Market Makers. Further information on Market Maker requirements can be found at...
Mondo Visione  Mar 24  Comment 
Operation Principles of the New Market Making Program in VIOP have been updated as follows: Effective from April 1, 2016, USD/Ounce Gold, Gold (TRY/Gr) and Durum Wheat futures contracts will be included in the New Market Making Program based...
Financial Times  Feb 5  Comment 
KCG deal comes as Chinese investors buy Chicago Stock Exchange
Mondo Visione  Jan 5  Comment 
The European Securities and Markets Authority (ESMA) has today published the results of a targeted review it conducted among five national competent authorities (NCAs) under the Short-Selling Regulation (SSR).  The review focused on those...
Mondo Visione  Dec 30  Comment 
The following obligations (quarterly adjustment) regarding maximum spread and minimum size will be effective as of January 4, 2016. Obligations Specialist and Market Maker for Cash Market (PDF-File 293 KB) Market Maker for...




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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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