Market makers

RECENT NEWS
Benzinga  Aug 24  Comment 
Virtu Financial Inc (NASDAQ: VIRT) shares are climbing throughout the morning following the broad market selloff at the open. Automated trading has been steadily declining on the NYSE as Payment For Order Flow (PFOF) continues to route trades...
Mondo Visione  Aug 12  Comment 
MIAX has filed to amend Rule 612, Aggregate Risk Manager (“ARM2”) to provide Enhanced ARM Protections for Exchange Market Makers. Under the new rule, Market Makers may determine to engage either or both of the following Enhanced ARM...
Clusterstock  Aug 11  Comment 
By Jessica Toonkel (Reuters) - Australia's Macquarie Group is entering the U.S exchange-traded fund market making business, officials told Reuters in an interview. Market makers provide ETF issuers with an array of services, including providing...
Mondo Visione  Aug 11  Comment 
Collaboration underlines growing Egypt-UAE capital markets links Market making supports liquidity and trading activity Beltone Market Maker, a subsidiary of Beltone Financial Holding, one of Egypt’s leading investment banks, has joined...
Mondo Visione  Jul 8  Comment 
Orc, the global market leader in electronic trading technology for listed derivatives, today announced that Orient Securities Co. Ltd. (Orient Securities), one of the largest securities firms in China, has selected Orc’s Trading Bricks platform...
Mondo Visione  May 28  Comment 
Hotspot, a leading institutional foreign exchange (FX) market owned and operated by BATS Global Markets (BATS), today announced new standards for Hotspot liquidity providers that qualify as Market Makers, including reduced timeframes for acting on...
Mondo Visione  May 15  Comment 
On April 30, after 28 trading days of heated transactions, trading after a fiery, the simulation testing of Dalian Commodity Exchange (DCE) for market making of the soybean meal options (the “Collaborative Testing” for short) was crowned with...
Mondo Visione  Apr 28  Comment 
As from 5 May, the Moscow Exchange will change its Equity Market Making Program with respect to quote maintenance as part of a regular review.  In response to the consultation with market makers, the Exchange decided to ease maximum spread...
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.




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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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