// definition
Market maker
An intermediary quoting buying and selling prices
Short definition
An intermediary willing to trade for its own account at buying and selling prices it quotes. It uses its own capital and can hold inventory between trades. Quoted quantities and execution conditions matter: the presence of a market maker does not guarantee that an entire customer order can be filled at one price.
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Primary sources
- MiFID II, Article 4: market-maker definitionDealing on own account against proprietary capital at quoted prices.
- SEC Investor.gov, executing an orderQuoted prices, quantities and execution conditions.