Talk:Market maker

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UK-centric[edit]

This article seems very UK-centric, despite token mentions of South Africa and the US. Certainly the LSE is not the only exchange in the world to use market makers! Is there a survey article somewhere which describes the differences among the major systems of financial markets? (Besides the one described here, open outcry and electronic auction markets would seem to be the other major kinds. Have I missed any?) 18.24.0.120 20:57, 7 Feb 2004 (UTC)

I agree with all you say but that is unimportant: Please, edit boldly! Psb777 03:01, 8 Feb 2004 (UTC)
What other stock exchanges have the LSE system of officially designated market makers? I'm sure you may be right but I know of none.
Open outcry and electronic auction markets do not have market makers in the same way as the LSE.
Hopefully someone who knows more than me will be here soon. --Psb777 03:45, 8 Feb 2004 (UTC)
The NASDAQ Stock Market uses market makers, and is arguably at least as important as the London Stock Exchange.
OK, add it in. Don't wait for me. Psb777 07:01, 8 Feb 2004 (UTC)

Possible copyright violation[edit]

Someone has added a great FAQ but it looks like a cut'n'paste job and so there might be a copyright violation. What is the source of the material? Paul Beardsell 14:11, 26 Apr 2004 (UTC)

OK. I found the source and it has a copyright notice. I have deleted theFAQ and replace it with a link to the source. Paul Beardsell 00:28, 24 May 2004 (UTC)[reply]

US info added[edit]

I added in some more U.S.-centric information on market-makers. This is my first edit so please let me know if there's some issue with it. rJames383

Material out of date[edit]

The material on this page seems out of date. Last edits were in June 2006. Someone knowledgeable (definitely not me!) should edit. —Preceding unsigned comment added by 72.200.128.3 (talk) 20:18, 6 December 2007 (UTC)[reply]

I agree. For example, what about the new uptick rule? Short selling and so forth? Brian Pearson (talk) 00:27, 31 March 2010 (UTC)[reply]

STOCK MARKET CRASHED[edit]

i heard that the stock market creashes and most of new york lost it's stock to NASDA need less to say the company was on a down fall —Preceding unsigned comment added by 65.118.184.226 (talk) 15:14, 24 January 2008 (UTC)[reply]

In market crashes, market makers sometimes take a bath. That needs to be n this entry. Figureofnine (talk) 14:50, 16 June 2010 (UTC)[reply]

Article problems[edit]

Has anyone pointed out that this article is awful? It is superficial and in some parts grossly inaccurate. Figureofnine (talk) 14:49, 16 June 2010 (UTC)[reply]

Inconsistent and vague[edit]

This sentence "A market maker aims to make money by buying stock at a lower price than the price at which they sell it, or selling the stock at a higher price than they buy it back. Ordinarily they can make money in both rising or falling markets, by taking advantage of the difference between "bid" and "offer" prices." (if this were true, then we all were "market makers") contradicts the introduction, according to which both things are to be done at the same time. --Alex1011 (talk) 22:41, 25 February 2011 (UTC)[reply]

" In return, the specialist is granted various informational and trade execution advantages."

- Various information and trade executions is a vaguephrase. What are the advantages given? A table with the specific advantages for each Exchange would be nice. — Preceding unsigned comment added by 209.29.10.178 (talk) 19:13, 25 October 2012 (UTC)[reply]

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"Decentralized network protocols" seems senseless random mumbo jumbo[edit]

Someone who knows well what a market maker is should take a look at that section, from my side of knowing something of decentralized network protocols (but I suppose they're actually trying to refer to things like bitcoin) it seems nonsensical.

It was introduced by the revision 1011277498 and made arguably even worse by the subsequent edit

Out of curiosity I found the full pdf of the paper referenced in the section and it has nothing to do with market makers (absolutely no mention)... 🙄

37.162.6.143 (talk) 03:09, 17 March 2022 (UTC) edited 04:57, 17 March 2022 (UTC)[reply]

Hello. I believe this is referencing automated market makers, definitely not nonsensical. It also seems to be lacking a wikipedia page https://www.bis.org/publ/qtrpdf/r_qt2112v.htm
nothing much to do with bitcoin but mainly ethereum and it's competition/clones. uniswap would be the primary example Supra sayan (talk) 20:31, 21 September 2022 (UTC)[reply]
a formal verification of basic amm spec https://github.com/runtimeverification/verified-smart-contracts/blob/uniswap/uniswap/x-y-k.pdf Supra sayan (talk) 20:36, 21 September 2022 (UTC)[reply]
Decentralized protocols are built on top of protocols and software implementations of such protocols,
so a central authority doesn't exist, except in terms of shared consent through the use of such
software.
Let's say that a market maker is defined as an entity which is simultaneously ready to buy and sell the same object on the same market, for two prices whose difference marks the spread.
One would then have to exclude decentralized networks where only one object is transfered, since pricing is external to the network. If two objects are traded, one for another, such as Coin A and Coin B, then a price can be determined, and thus a spread can exist.
If we assume a blockchain ledger stores trades, then a market maker on such a network would be one who posts contracts for buys and sells simultaneously.
Since there is no central authority, and thus nobody has an advantage over other traders, anyone can be a
market maker. Furthermore, anyone can post a market making entry to the ledger once, and never post again.
There is also no mechanism to force anyone to become a market maker, or to provide an advantage to them
over other traders.
Therefore it can be concluded that, albeit market makers can exist on decentralized networks, they
receive no special privileges over other traders. Market makers on decentralized networks are thus
self appointed and not limited in number. Yogum (talk) 11:50, 22 September 2022 (UTC)[reply]
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