Market makers

RECENT NEWS
Mondo Visione  Apr 19  Comment 
Qatar Stock Exchange and Qatar Financial Markets’ Authority are currently putting the final touches on market making rules activities intended to be carried out by the financial services companies, members in the market after obtaining the...
Mondo Visione  Feb 21  Comment 
Guidelines compliance table Exemption for market making activities and primary market operations under Regulation (EU) 236/2012 of the European Parliament and the Council on short selling and certain aspects of Credit Default Swaps...
Mondo Visione  Feb 15  Comment 
BM&FBOVESPA announces Credit Suisse as the Market Maker for Options on Shares of Pão de Açúcar (PCAR4), Estácio (ESTC3), Itaú (ITUB4), Banco do Brasil Seguros (BBSE3), Cia Siderúrgica Nacional (CSNA3), Cyrela (CYRE3), Kroton (KROT3), Oi...
Mondo Visione  Dec 13  Comment 
The program is for options on shares of Gerdau, Bradesco and Banco do Brasil On Friday (December 09), the Exchange began the accreditation process for market makers in options on the shares of Gerdau (GGBR4), Bradesco (BBDC4) and Banco do...
Benzinga  Dec 6  Comment 
Nadex submitted to the Commodity Futures Trading Commission (CFTC) its intent to amend its Market Maker fees to include a “Wide Spread Surcharge.” If approved, the amendment will take effect on December 19, 2016. Market makers would be...
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.




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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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