Everything you’ve wanted to know about Market Making, but never been able to ask!

piworld webinar with Spencer Crooks, ex-Director of Market Making at Winterflood Securities.

Tamzin opens with some questions, but this was the opportunity for listeners to ask their questions.

 

 

Spencer’s background – 00:50
What do Market Makers do? – 01:43
What’s the business model? – 02:44
Why would a Market Maker buy when everyone’s selling? – 03:57
What happens when a Market Maker gets it wrong? – 05:06
Does the risk level ever get too high for the Market Maker? – 06:30
How is the spread determined? – 07:44
How is the market size set? – 09:46
What’s a tree shake? – 12:26
What’s the motive for a Market Maker to elicit a tree shake? – 13:30
With a profit warning, what’s happening for a Market Maker – 14:46
What is happening for the Market Maker when Covid-19 hit? – 18:55
But volatility is good for Market Makers? – 21:30
From your days as a Market Maker how do you get the best deal today? – 23:38
How do different market makers agree on the price for the same stock? – 25:50
What’s the best time of day to trade? – 27:33
Tiny trades, who places these? – 29:13
Do Market Makers own any stock or do they just move it on? – 31:10
Any advice for buying larger positions in smaller stocks – 34:05
Would there be a better market without Market Makers? – 37:30
Do Market Makers hunt stop losses? – 41:30
Is it better to pay more for a full service broker? – 43:10
What is Spencer doing now? 47:50
What’s the future of the Market Maker? – 49:05
Is Level 2 worth it for retail investors? – 53:00
Do you miss the cut and trust of Market Making? – 53:55

About Spencer Crooks:

Spencer joined Bisgood Bishop in 1985. After takeover of Bisgood Bishop, traded at County NatWest until 1988, before leaving to join Winterflood Securities. Became a director in August 1999. Appointed FSI 2006

Content for the retail investor

 Source Link www.piworld.co.uk


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