Market maker ( born Market maker - the creator of the market) - a broker / dealer , assumes the risk of acquiring and storing securities of a particular issuer in his accounts in order to organize their sales. Market makers act on the stock and over-the-counter markets as direct participants in transactions. At the New York Stock Exchange, market makers are called "professionals." As a rule, market makers act on both sides - both sellers and buyers. Typically, a market maker has an obligation to sell at least 1000 shares for each of his customers (approximately 20-30 for one market maker). Transactions are carried out over the phone or over the Internet and take seconds.
A market maker on a stock exchange can be, for example, a brokerage office , which, under an agreement with the stock exchange, undertakes to keep simultaneously placed bids with a difference between purchase and sale prices (see spread ) no more than the agreed amount, for this the exchange provides the market maker with certain benefits, for example, for paying a commission fee.
Top-10 according to Reuters data of the largest traders by turnover in the foreign exchange market for 2007 [1] :
- Deutsche Bank - 19.30%
- UBS - 14.85%
- Citi - 9.00%
- Royal Bank of Scotland - 8.90%
- Barclays Capital - 8.80%
- Bank of America - 5.29%
- HSBC - 4.36%
- Goldman Sachs - 4.14%
- JP Morgan - 3.33%
- Morgan Stanley - 2.86%
Notes
- ↑ https://books.google.com/books?id=UI85jsuYWkcC&pg=PA114& Top currency traders in 2007, table 13.1 page 114 of ISBN 9781137275127
Links
- Market Maker // US SEC (English)
- Market maker InverstorWords, WebFinance
- http://www.investopedia.com/terms/m/marketmaker.asp
- Matt Levine Market-Making Is Making Markets (English) , Bloomberg View (DEC 13, 2013). Date of treatment January 3, 2015.