ETFM asks a panel of experts to discuss the role of market makers in the ETF arena
What is the role of the market maker and why is it so important for ETFs? Mark Rodino: The market makers are responsible for placing bids and offers on the exchange to provide on-screen liquidity and facilitate clients’ buy and sell executions. This ability to trade intraday is the key advantage of ETFs versus their mutual fund cousins. Market makers keep the ETF trading prices efficient, true to net asset value (NAV) and make buying and selling these funds easy for clients. Paolo Giulianini: A market maker is an operator whose primary task is to ensure the quality of the market...
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