While I trade the ES on a regular basis, I really never concerned myself with how the market is made for this future on GLOBEX. Looking at the Book, it appears there are four levels of bids and asks--and they move incredibly fast. Are the MM's bots? If so, are there brokers behind the bots? Just curious as to how a market is made for the ES on GLOBEX. I know the NYSE has specalists and the NASDAQ is all electronics but with brokers acting as MM.
Good question, I've wondered this myself. Who are the big players on the B/A? Are they trying to capture a spread as in stocks? Anybody?
I will guess that the all orders on the ES are traded electronically. "To list all of the advantages of trading these markets would require lots of ink and a thick pad, but some of the highlights include the unique combination of high volatility, high liquidity, high leverage, and the ability to trade with 100 percent electronic order execution platforms, which negates the need for pit or floor broker involvement. Add to that minimal slippage, tight spreads, no uptick rule, ability to short as easily as going long, absolutely no market research to do, much less time consuming than other futures, very low commissions, great short-term tax advantages, hedging opportunities, and no accounting mine fields. That means these markets are, and always will be, totally fair. No market makers, no specialists, no corruption, no manipulation, no insider trading and no scandals to have to deal with. That alone is worth the switch from other futures contracts." from http://www.daytradingcourse.com/emini