Exchange Market Makers in U

Exchange Market Makers in U - 4-1Exchange Market Makers in...

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Unformatted text preview: 4-1Exchange Market Makers in U.S.•Spet is exchange member assigned to handle particular stocks–Has two roles:–Broker to match buyers and sellers–Dealer to maintain fair and orderly market•Spet has two income sources–Broker commission, without risk–Dealer trading income from profit, with risk4-2New Trading Systems•Super Dot–Electronic order-routing system–Member firms transmit market and limit orders in NYSE securities to trading posts or firm’s booth–Report of execution returned electronically–85% of NYSE market orders enter through Super DOT system•Display Book4-3New Trading Systems•Opening Automated Report Service (OARS)–Pre-opening market orders for Super Dot system–OARS automatically and continuously pairs buy and sell orders–Presents imbalance to the spet prior to the opening of a stock–Helps determine opening price and 4-4New Trading Systems•Market-Order Processing–Super Dot’s postopening market order system is designed to accept member...
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This note was uploaded on 01/24/2012 for the course FIN 4360 taught by Professor Davidbray during the Spring '12 term at Kennesaw.

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Exchange Market Makers in U - 4-1Exchange Market Makers in...

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