Is Market Making Dead?

C

Canuck709

A quick question for any of you career market makers. Is this a dying space. I understand from friends in the role that thanks to the algo's this role isn't what it once was.

any thoughts?
 
i'm no expert, but from what i gather, human market making is dead. computerized market making is stronger than ever.

btw, i', talking about exchange traded, liquid instruments.
 
There are still NASDAQ marketmakers at the larger firms, although most of their time is spent executing, as firms are not committing a ton of capital to facilitate institutional orders.

In other words, they are order clerks with the title of "trader" or "marketmaker"!
 
This indicates to me that the options market is far less efficient than the stocks'. This is one area I'd like to see the government step in and regulate. Any market that intentionally designed to be inefficient for the benefit of a select group should be illegal.

Quote from monty21:

Certainly not for options...

But for stocks it slowly is IMO
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Quote from bidask:

i'm no expert, but from what i gather, human market making is dead. computerized market making is stronger than ever.

btw, i', talking about exchange traded, liquid instruments.
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agree completely. automated marketmaking is popular.

if you are smart and and young right out of or still in school. the OTC space is still dependent on humans and the more exotic the security the more important the market maker is.

I think OTC power/gas is the way to go if you're just starting out...look into utilities.
 
Pinksheets and the otc BB markets still use market makers extensively as that market may never be fully automated. NITE is a major player there, and some lesser known firms like Domestic Securities, Hudson Securities and a few others are very active in the penny and sub penny stocks.
 
Oh really? So you disagree???

I stand by my logic that the less efficient a market is the more profitable it is for a potential market maker.

Quote from cvds16:

you have no idea what you are talking about obviously but are just talking out of your ass :mad:
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why don't you become a market maker in options, you'll soon find out how efficient they are. Like I said you are talking out of your ass.
 
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