How do market makers provide liquidity, if they even do, during major events such as Trump or Powell speeches? Are they able to get access to ultra-low latency audio/video feeds from these events? From my understanding this is only allowed for the press. Based on what Powell or Trump says, the market can move drastically so do they just decide to pull all of their shares or do they rely on Bloomberg/Reuters to write a headline quickly on what is said? Just a little confused within the HFT world how people trade based on these type of events... if they at all -- though there has so be someone that first reacts to these verbal statements.
MM doesn't need to provide additional liquidity during important speeches; There will be enough liquidity. During important speeches, MM will be very busy concentrating on his job. No time to watch Bloomberg/reuters/cnbc/pornhub .... They might have to adjust their MM s/w parameters and those things HFT uses bot/algo/machine to trade. so they just sit back and enjoy or weep and gnash their teeth in despair.
Well in that case I wonder what firms are able to correct the market first based on statements... and the speed at which they do this. It's not clear to me whether it's "allowed" for any firm to have direct feeds for these types of events.
Market makers play a crucial role in providing liquidity during important speeches, such as those by central bank officials or key economic policymakers. They do this by continuously quoting bid and ask prices, ensuring that there is always a market for buyers and sellers.
The market maker firms get the info at the same time as everyone else. You see liquidity dry up just before the announcements. the edge the market makers have is that they are much faster at adjusting their prices and they can move with some priority. But their interpretation of the release is the same as everyone else’s and if you can catch them off guard you can have a very good day.
In times of uncertainty a nice MM will tighten their markets and provide larger size in order for a more equitable outcome. They take into account the less fortunate and marginalized sectors.
If you work in the Red Cross or UNHCR, or as a Social worker, you should do very well. We need more people like you. But if you work as a MM, you will be fired within a day.
They don't. They are pre-positioned with wider spreads thus why you see very large moves on relatively low volume. There are sentiment analyzers that comb through speech text and media feeds to score per their internal data models. The proprietary logic & infrastructure that supports it is well beyond most.