What Counts as a Market Maker

What this video covers

• The three statutory market maker categories: specialists permitted to act as dealers, block positioners, and dealers holding themselves out as willing to buy and sell for their own account
• Why a block positioner does not need a posted quote, and why “or otherwise” means a dealer can hold out without entering a quotation
• How FINRA defines an OTC market maker through proprietary quotations or indications of interest in an inter-dealer quotation system
• Why OTC market maker status applies security by security, rather than automatically covering the entire firm
• The OTC equity security double subtraction: not a national market system (NMS) stock and not a restricted equity security
• Why the statute uses regular or continuous holding out, while the ADF definition requires regular and continuous holding out
• How an ADF electronic communications network (ECN), alternative trading system (ATS), ADF trading center, and New York Stock Exchange designated market maker (DMM) fit into the exam distinctions