Can Hedge Funds back market makers?

Discussion in 'Trading' started by ImamicPH, Jul 23, 2006.

  1. Can a hedge fund make markets?

    I was thinking if I was running a fund I'd buy a seat on the NYSE and use part of the AUM to back a market maker in a stock with high volume.
  2. segv


    Many funds have market-making operatings that augment their primary strategies.

  3. so there are specialists on the NYSE that essentially "belong" to funds?

    I'm sure the specialist gets a cut, but this would be the same agreement as if the seat were owned by a sole private investor.
  4. Citadel does a lot of options volume on the ISE.
  5. CIG is one of the largest option MMs.
  6. thanks to those that posted. I had no idea.

    It's makes sense.

    Who else likes this?