SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Market Makers - What They Do and How They Do It
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Richard L. Williams who wrote (253)6/29/1999 11:13:00 AM
From: DanZ  Read Replies (1) of 429
 
Rick,

The rule exempts "bona fide market making activities". I assume that this means hedging by a market maker is exempt but a naked short position that they want to put on isn't. The question is: what constitutes a bona fide market making activity? Do you think I interpreted this correctly?

Market makers generally do not take a lot of risk so it would be unusual for a market maker to hold a naked short position as you described. Best of luck with HTSF. In the case of GUMM, the short position is held in customer accounts, not by a market maker.

Thanks,

Dan
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News