They have to step up to the plate and buy to provide liquidity otherwise no one can sell.
How the MMs handle panic like this?
- Thread starter turkeyneck
- Start date
by vigorously studying their legal obligations?
Wrong.
MMs are held to a minimum size on their bid, or their actual bid size, whichever is greater. After that, nothing prevents them from merely dropping their bid outside of the market, or just provide minimum required liquidity size at various prices all the way down to zero.
Osorico
