Designated Market Maker
a designated market maker, or dmm, maintains fair and orderly markets for an assigned set of listed firms. this also helps improve market liquidity. the new york stock exchange created this position in 2008 to offer better service than electronic-only platforms. the dmm is a point of contact for the listed company, and provides them with information such as trader sentiment and who has been trading the company's stock. ? is a broker who works along the ? of the nyse's trading floor. ? is a dmm who works in the center of the trading floor. ? represents a major financial institution that wants to buy a large number of xyz corp shares. he works with ? to make it happen. ? has four main responsibilities. one, maintaining fair and orderly markets for securities. this includes displaying buy and sell ? for a guaranteed number of shares and providing the best available bid and ask prices for market orders. two. buying for his own account in the absence of public buy orders. three, selling from his own account in the absence of publc sell orders. and, four, acting as an agent by executing public orders left within. ? makes a profit for his firm from the market maker spread. that's the difference between the price at which he buys xyz corp stock from another trader and the price at which he sells it to ?'s firm. when ? receives ?'s order, he immediately sells xyz corp stock to him from his own inventory ? from an offsetting order. do dmms have insider information. no. they do not know who is ? sold the security until after the trade, so they don't have insider information and face the same risks as other market participants. this levels the playing field between the dmm and floor brokers. dmms do increase competitiveness and market quality as electronic trading becomes increasingly widespread.
- designated market maker（dmm）・・・指定マーケットメーカー