Supplemental Liquidity Providers (SLPs) are electronic, high volume members incented to add liquidity on the NYSE. All of their trading is proprietary. All NYSE 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.
The all-electronic NYSE Arca relies on a system of competing Market Makers to provide a fast, efficient, and consistent marketplace for all participants, including liquidity providers. Market Makers are required to maintain adequate minimum capital and continuous, two-sided identified and displayed quotes for all registered securities during Core Trading Hours (9:30 a.m. to 4:00 p.m. ET). They also clear and settle transactions through a registered clearing agency.
NYSE Arca appoints Lead Market Makers (LMMs) for ETPs (Exchange Traded Products) with a primary listing on the exchange to meet defined obligations in exchange for incentives such as lower transaction fee.
For more information, please review NYSE Arca Product Brief: Lead Market Making
Market Makers subject to the Aggregate Indebtedness Requirement maintain minimum net capital that is the greater of:
Market Makers subject to the Alternative Net Capital Requirement maintain minimum net capital that is the greater of:
Eligible traders can apply in writing to register as Market Maker Authorized Traders (MMAT). Market Makers must meet rigorous education, training, and testing requirements to obtain NYSE Arca Equity Trading Permits (ETP), register in a given security, and remain in good standing with NYSE Arca thereafter to perform market-making activities.
The NYSE Arca Market Maker Orientation is an introduction to NYSE Arca Market Maker access, obligations, requirements and order types. Please review and certify that you have completed and understand the policies and procedures set forth in the Market Maker Orientation by signing the last page of the PowerPoint and returning to Client Relationship Services at [email protected].
NYSE Arca will review this document upon receipt, and Market Maker Registration becomes effective when the applicant receives approval notice from the NYSE Arca.
Next, please complete the Application for Individual Registration and Non-Registered Associated Person (NRF) Designation* or the Application to Become a Lead Market Maker in a Particular NYSE Arca Primary Listed Security** (see links below).
Substantial or continued failure to engage in dealings in accordance with NYSE Arca rules will result in suspension or termination of Market Making status. Any registered Market Maker may withdraw registration by giving written notice to NYSE Arca, and the withdrawal becomes effective on the tenth business day following the NYSE Arca's receipt of the notice. After the withdrawal, the ETP holder shall not be permitted to re-register as a Market Maker for a period of six months.
MMATs must not be subject to statutory disqualifications.
*Includes Market Maker and Lead Market Maker
**Must be an existing Lead Market Maker ETP in order to submit this application for a green sheet posting
The NYSE and NYSE Arca Retail Liquidity programs promote cost savings through price improvement for individual investors on retail order flow for securities that trade on the NYSE and NYSE Arca markets. Offering price improvement for retail orders within an exchange environment offers individual investors new economic incentives and provides greater transparency, liquidly and competition in the U.S. cash equities marketplace. The program can be utilized by retail firms directly as well as by the brokers that service retail order flow providers. The NYSE Retail Liquidity Program is available for NYSE-listed securities and the NYSE Arca Retail Liquidity Program is available for all other exchange-listed securities.
A Retail Order is an agency that originates from a natural person and is submitted to the Exchange by an RMO. The order cannot originate from a trading algorithm or any other computer methodology. The Retail Order interacts with RPIs and other available orders that are priced better than the contra-side PBBO. Both NYSE and NYSE Arca send an indicator to both the NYSE XDP and SIP feeds when RPIs are available, indicating the side of the interest but not the size.