Exchange Market Makers in U

Exchange Market Makers in U - Exchange Market Makers in U.S...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
4-1 Exchange Market Makers in U.S. Specialist is exchange member assigned to handle particular stocks Has two roles: Broker to match buyers and sellers Dealer to maintain fair and orderly market Specialist has two income sources Broker commission, without risk Dealer trading income from profit, with risk
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
4-2 New 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 Book Electronic workstation that keeps track of
Image of page 2
4-3 New 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 specialist prior to the opening of a stock Helps determine opening price and potential need for preopening call market
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern