The liquidity provider licenses used to be a closed shop at NYSE Liffe. Once a firm was “primary market maker”, quoting all available options in a certain class, they usually could hold on their quoting position forever. These quoting licenses were limited, usually only 3 for smaller stocks to around 5 for the bigger onesRead more
In the option market, the market makers are quoting options to capture a profit from the bid-ask spread. Apart from this, sending bids and offers to the market serves another practical goal. Euronext Liffe is charging less when you are providing liquidity to the market. It’s not unusual for a lot of market makers toRead more
Reading yesterday’s news on the remains of Van der Moolen in the Financieele Dagblad. Turns out at least seven spin-off’s have been created from the wrecked company. One may wonder how many of the seven dwarfs will survive in 2010. Fairy tales usually have a happy ending, so maybe we could say “and they livedRead more
