The New York-based market maker also made a bid today to buy Knight Capital.
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Once a price is set, the market maker oversees the transaction between a buyer and seller.
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However, the market maker at the same time is profiting from his short futures position, Sebastian explained.
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Speculation is that the then-NYSE board nominee took the hit for a steep decline in the market maker's revenue.
The retail trader benefits from a put that gains in value as the market falls, while the market maker loses.
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Goldman is at once one of the NYSE's largest clients, its second-largest market maker and a shareholder, with a 4.6% stake.
He and Steve Forbes will discuss why an options market maker exemption to the short sale rule is vital for liquidity.
Based on the testimony before the Senate Subcommittee, it is evident Goldman often acted as more than a traditional market maker.
The SEC, in looking for ways to prevent another crash of that sort, is focused on market maker obligations as a result.
When one market maker offered a quote superior to all others, it was in an odd sixteenth only 11.8% of the time.
These traders hope to get rich by shaving small slices off market maker spreads in o- t-c stocks like Dell, Intel and Microsoft.
The current focus on reducing the role of the market maker is penny wise and pound foolish, and could prove costly in the future.
In fact Chavez has overseen a 22% fall in production since 1999, turning Venezuela into an OPEC bag carrier, certainly not a market maker.
The exchange anointed Getco a designed market maker earlier this year.
We saw this vicious cycle in junk bonds after Mike Milken was forced to suspend his activities as the market maker for the junk bond market.
Joe Kinahan is chief derivatives strategist for TD Ameritrade and began his options career as a Chicago Board Options Exchange (CBOE) market maker in 1985.
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The transition to a global renewables market entails a greater degree of private and state collaboration, with the private sector gradually taking over the role of market maker.
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In this classic role, the market maker promotes efficient markets.
But beyond the trading of energy futures contracts back and forth--all with huge notational values--Enron's sales grew because it was a "market maker, " serving as the middleman on deals.
Inherited from the 2004 acquisition of FleetBoston Financial, Bank of America Specialist Inc. is the third-largest market maker on the exchange, representing 429 stocks and 17.7% of the share volume.
Members would also receive certain market maker privileges, which are designed as incentives to get participants to migrate current positions to the platform and begin trading new contracts as well.
Getco, as this super-special market maker, has some obligations.
Knight Trading (nasdaq: NITE - news - people ), the largest wholesale market maker, suffered a 55% drop in revenue between 2000 and last year, when it lost money.
The company, which has raised an unspecified seed financing from Spark Capital and market maker GETCO, provides browser-based tools for anyone with basic programming knowledge to create algorithms and simulate actual trading with them.
Getco is getting the business by way of buying it from Barclays, which had to shed some of its assigned stocks after acquiring the designated market maker business of LaBranche, one of the old-guard specialist firms.
The AIM market, unlike NASDAQ, uses a market maker, a representative firm that uses a series of factors to determine and set a fair share price for stocks like Sky Capital Holdings, which had a low share trading volume.
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The primary responsibility of a market maker is to maintain an orderly market by matching buyers and sellers of a security and to stand ready to buy or sell for their own account when there is a price imbalance.
While spending my time there primarily as an independent market maker, I also worked for ING Bank, Blue Capital and was Managing Director of Option Trading for Van Der Moolen, USA. In 2006, I joined the thinkorswim Group, which was eventually acquired by TD Ameritrade.
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