Designated Primary Market Maker

From MarketsWiki

This page is not complete!

Do you have knowledge to contribute on this or other subjects? Help the wiki grow -- add what you know.

A market maker is an exchange member whose function it is to aid in the "making" of a market, by making bids and offers for his account in the absence of public buy or sell orders. Market makers are used in both the securities and futures businesses, and are normally assigned to a particular security or futures contract or group of securities or futures.

A Designated Primary Market Maker, is a specialized type of market maker, who has agreed to guarantee that he or she will take the position in a particular assigned security, option or option index.