Market makers at inside market

P

Patryk Jalmuzna

Why does market makers never show at the inside market (inside bid/ask) in the Level 2 (market depth)?

I only see ECNs and exchanges on the inside market and market makers only the secound, third etc. price level.

Is 99.9% or even 100% of all transactions realy completed through ECNs or/and iceberg/dark pools? - And if so; why are the market makers still shown in the level 2 than?

I hope someone can help me understand this.

Patryk
 
Patryk Jalmuzna said:
Why does market makers never show at the inside market (inside bid/ask) in the Level 2 (market depth)?

I only see ECNs and exchanges on the inside market and market makers only the secound, third etc. price level.

Is 99.9% or even 100% of all transactions realy completed through ECNs or/and iceberg/dark pools? - And if so; why are the market makers still shown in the level 2 than?

I hope someone can help me understand this.

Patryk
More...
MM's often trade through ECN's to mask their action. The days of transparent L2 are long over.
 
Patryk, I've not traded stocks in years but even then, you couldn't rely on L2 to tell you who was playing. Before the bear market of 2000, began, there was more transparency. The biggies didn't want you to know they were selling while encouraging people to buy.
 
This is for protecting themselves I would say, but the point is they are not charity anymore. They in most of cases exploit informed liquidity. (at least in OTC where there is not a dedicated market maker)
 
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