The difficulty will be in separating what is truly proprietary from market making or other hedging transactions.
But there are also other measures in the proposed rule that are raising concerns like market making activities.
Most high-frequency trading is fundamentally a form of market making with very tight inventory control and very short-lived positions.
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Our client base is a pretty important client base and they know our business and they understand what market making is.
Specialist firms used to be hot property on Wall Street, but that was before the whole market making system came under scrutiny.
They list specific criteria that must be met for institutions to engage in market making, underwriting and other permitted types of trading.
After May 6, we focused on circuit breakers, improving market making requirements.
Trading firms have used stub-quotes, which are bids and offers way outside the normal range, as a way of meeting minimal market making requirements.
Soon thereafter, the bond offering was withdrawn from the market making it the first such foreign bond offering ever derailed on the U.S. market for primarily national security reasons.
Up to now, the main argument had been over the difference between proprietary trading (banks making their own bets) versus market making (acting as a go-between to allow other parties to make bets).
The home team tried to say something like that with their references to market making and by pointing out that they gave market participants the opportunity to select their desired level of risk.
They are integral to underwriting and market making.
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Adam Hewison, president and chief strategist with INO and MarketClub.com, said the recent activity of the market making a high on Aug. 23, then breaking, making a new high on Tuesday, then breaking, should make investors cautious.
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What specifically makes market making bona fide?
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The rule, which is being crafted by five financial regulators, is said to have been held up by SEC officials haggling with banking regulators over certain aspects of the rule, including how to differentiate market making from proprietary trading at broker dealers.
There turn out to be at least six different facets to this approach: the establishment of an internal compliance program, bona fide market making, reasonably expected near-term demands of clients, registration under securities or commodities laws, revenue from fees and commission, etc.
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For years, this is what happened if you wanted to buy or sell a Nasdaq stock: Your buy order went to a market making firm, which charged you the offer side of the market, pocketing the difference between that price and the lower bid.
Utilizing OCZ's cutting-edge Indilinx Everest 2 controller platform (first introduced in the flagship Vertex 4 SSD series), Agility 4 SSDs offer a cost-effective alternative to other SATA III SSD solutions in the market making them ideal for mainstream entertainment, gaming, and mobile storage applications.
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Can we hold out hope that the new combined public firm, which will be one of the largest high frequency trading, market making, broker dealing firms in the world, will be audited by a group of professionals that can make sure the arguably systemically important new public company has airtight IT?
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It never ceases to amaze me how background conditions work out to continue the long history of the market making most of its gains each year in the winter months and when there is a correction of any degree it almost always takes place in the unfavorable season between May and November.
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This means that success is possible for a far wider range of people in a market, making market societies inherently less hierarchical than more closed ones.
Short-term traders are choosing to cut down risk and wait for greater clarity in the market before making big bets on market direction.
Also, the tape is thin, with little size on the inside market, making it easy for the market to make quick jumps in both directions.
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The classic justification for market-making and other types of trading is that they endow the market with liquidity, and throughout the financial industry I heard the same argument over and over.
It seems, then, that the market is making itself by offering a viable, attractive alternative to the traditional art market.
The distinction between market-making for customers in this way and proprietary trading is often blurred, particularly in firms where the market-maker and the proprietary trader sit together or are, indeed, the same person.
Oil and gas services is a highly consolidated market where Schlumberger has more than 60% market share, making entering this market without a partner nearly impossible.
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It controls nearly 90% of the global market, making it nearly synonymous with online auctions.
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In 1993 Schwab depended on commissions and market-making for three quarters of its revenue.
He also wants information related to the bank's market-making activities and its clearing and settlement procedures.
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