NYSE Arca Market Makers

Exchange requirements and clearing firm requirements can be two vastly different numbers.
What the clearing will want will be vastly different. Also price compatible technology solutions.
It gets more expensive from there, but it can be done. There are off-the-shelf solutions you can buy. You'll, on most venues, need to be a b/d or your clearing firm may have a solution. Get some pricing first. Small MMs die every week - price, one that is up for sale.

That is what my post said.
 
What do you mean get some pricing first? What sort of technology do I need? Where do I start with the pricing and who makes these tech platforms? ARCA's Lead MMs are mostly large banks and investment firms, maybe one or two oddballs MM that I've never heard of. Sounds like a reach for me but I am willing to look into this further, please give me more info.
 
You do understand that MMs have to post quotes and trade. So you are going to be streaming thousand of quotes for stock and 10s of thousand of quotes for options. You either build that technology or buy it. Plan on it being seven figures on the cash side and a multiple if you do options. You'll need a clearing relationship at DTCC and OCC if you do options. So this is where the relationship with clearing firms and your technology will be very important. You can self-clear at OCC with a clearing deposit. Depending on your history and personal assets a few million dollars. This is why most small MMs don't self-clear.
Your profile shows you live in NY. Make an appointment with NYSE/ARCA and grab a subway downtown to chat with them.
My rough guess is that if elect to both the cash market and options and do it all yourself start-up will be in excess of five million dollars. Keep in mind you can bring the startup down by renting the tech and becoming a clearing firm customer.

You will get unbelievable leverage with your clearing firm on hedged positions.
 
Last edited:
"You will get unbelievable leverage with your clearing firm on hedged positions." Do you mean this as in a MM can trade on margin borrowed from its clearing firm like a retail customer on 4x or 2x?

I saw the application sheet with NYSE to be a MM one can choose the ticker symbol for trading as a MM, maybe I can pick just a few instead of thousands.
 
Temujin79 said:
"You will get unbelievable leverage with your clearing firm on hedged positions." Do you mean this as in a MM can trade on margin borrowed from its clearing firm like a retail customer on 4x or 2x?

I saw the application sheet with NYSE to be a MM one can choose the ticker symbol for trading as a MM, maybe I can pick just a few instead of thousands.
More...

You will receive no orders.
 
This thread is becoming a waste of air. Make an appointment with membership and hop a subway. You won't become an MM by simply posting links.
 
Last edited:
ETJ said:
This thread is becoming a waste of air. Make an appointment with membership and hop a subway. You won't become an MM by simply posting links.
More...
re: delusions of grandeur
Don't you know who the OP Temujin79 is? He is the reincarnation of Genghis Kahn. whose name at birth was Temujin.:D:D:D
 
who said anything about delusions of grandeur. Why did you write "You will receive no orders."? please explain.
 
Last edited:
You must log in or register to reply here.
Back
Top