Though all of our markets operate electronically using cutting edge, ultrafast technology, we believe nothing can take the place of human judgment and accountability. It's this human connection that helps ensure our strength, creating orderly opens and closes, lower volatility, deeper liquidity and improved prices. For over 200 years, we've maintained a steadfast commitment to stronger, more orderly financial markets. And we intend to keep that tradition going for the next 200.
The NYSE and NYSE MKT both utilize the following people on the floor to keep markets orderly:
Designated Market Makers
The cornerstone of the NYSE market model is the Designated Market Maker (DMM). Formerly known as “Specialists”, DMMs have obligations for maintaining fair and orderly markets for their assigned securities. They operate both manually and electronically to facilitate price discovery during market openings, closings and during periods of substantial trading imbalances or instability. This "high touch" approach is crucial for improving prices, dampening volatility, adding liquidity and enhancing value.
DMMs apply keen judgment to knowledge of dynamic trading systems, macroeconomic news and industry specific intelligence, to make their trading decisions. The DMMs are a valuable resource for our listed company community, providing regular communication, making capital commitments, maintaining market integrity, and stepping in during special situations.
Floor brokers are employees of member firms who execute trades on the exchange floor on behalf of the firm's clients. As of 2012 there were 274 floor brokers among the 169 NYSE Member Firms (97 Electronic, 7 DMM, 65 Brokerage) on the NYSE and NYSE MKT. They act as agents, buying and selling stock for the public (institutions, hedge funds, broker/dealers). Floor brokers are physically present on the trading floor and are active participants during NYSE and NYSE MKT’s opening and closing auctions, as well as throughout the trading day. They also have the ability to participate electronically, and are able to access all markets and trade multiple asset classes to provide clients with a complete trading picture.
Supplemental Liquidity Providers
Supplemental Liquidity Providers (SLPs) are electronic, high volume members incented to add liquidity on the NYSE and NYSE MKT. All of their trading is proprietary. All NYSE and NYSE MKT stocks are eligible, but not all have SLPs. Supplemental Liquidity Providers are primarily found in more liquid stocks with greater than 1 million shares of average daily volume. Learn more about our Supplemental Liquidity Providers.
SLPs must maintain a bid or offer at the National Best Bid or Offer (NBBO) in each assigned security at least 10 percent of the trading day.
SLPs trade only for their proprietary accounts, not for public customers or on an agency basis.
SLPs that post liquidity in an assigned security that executes against incoming orders are awarded a financial rebate by the NYSE.
Supplemental Liquidity Providing (SLP-Prop) Firms
- HRT Financial LLC
- Latour Trading, LLC
- Tradebot Systems, Inc.
- Virtu Financial BD LLC
NYSE Supplemental Liquidity Providing (SLMM) Firms
- Citadel Securities LLC
- KCG Americas LLC
- Goldman, Sachs & Company