Market makers

RECENT NEWS
Mondo Visione  Apr 2  Comment 
Till March 27, Dalian Commodity Exchange (DCE) has conducted the collaborative test for market maker mock trading of soybean meal options (the collaborative test for short) for nearly a week. The operation ran smoothly with brisk trading,...
The Straits Times  Mar 23  Comment 
March 24, 2015 2:55 AM The Singapore Exchange (SGX) will start market making in electricity futures from April 1.
Mondo Visione  Mar 4  Comment 
NZX is pleased to announce it has reached an agreement in principle with First NZ Capital to become the foundation market maker for NXT, NZX’s new market designed for small high growth businesses. The market maker role will include: •...
Mondo Visione  Feb 5  Comment 
Susquehanna International Securities, Ltd. (SIS), a member of the Susquehanna International Group of Companies (SIG), a leading global trading firm in financial products, has signed a market maker agreement with TOM MTF. SIS’s commitment to...
Reuters  Feb 3  Comment 
Credit Suisse Group is getting out of the U.S. equity retail market making business by the end of the first quarter after failing to gain enough scale to make a go of it, the bank confirmed on Tuesday.
The Hindu Business Line  Jan 13  Comment 
‘Municipalities are ill-prepared to deal with the investor community’
Mondo Visione  Dec 30  Comment 
The following obligations (quarterly adjustment) regarding maximum spread and minimum size will be effective as of January 2, 2015. Obligations Specialist and Market Maker for Cash Market (PDF-File 167 KB) Liquidity providers...
Mondo Visione  Dec 29  Comment 
To promote the preparations for the businesses related to the market making among the market institutions and speed up the cultivation of potential market makers, Dalian Commodity Exchange (DCE) will organize the market makers with the intention...
The Hindu Business Line  Dec 28  Comment 
There are two sides to every coin, and likewise, there are two sides to every trade. The obvious two sides to each transaction are — a buyer and a seller. But in capital markets, t...




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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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