Advanced English Dialogue for Business – Regis tered equity market maker

Listen to a Business English Dialogue About Regis tered equity market maker

Sofia: Hi Faith, have you heard about a registered equity market maker?

Faith: No, what’s that?

Sofia: A registered equity market maker is a firm or individual that facilitates trading in specific securities by providing liquidity and maintaining fair and orderly markets.

Faith: Oh, so they help ensure there’s always someone willing to buy or sell a particular stock?

Sofia: Exactly. They play a crucial role in ensuring smooth trading and reducing price volatility in the market.

Faith: Are there any requirements for becoming a registered equity market maker?

Sofia: Yes, firms or individuals must meet certain regulatory requirements and adhere to specific obligations set by the exchange where they’re registered.

Faith: I see. So, they have to meet certain standards to ensure they’re qualified to perform their role?

Sofia: Yes, it’s important for market makers to have sufficient capital, technology, and expertise to fulfill their responsibilities effectively.

Faith: What are some of the responsibilities of a registered equity market maker?

Sofia: They’re responsible for quoting bid and ask prices for specific securities, providing liquidity by buying and selling shares, and minimizing spreads between buy and sell prices.

Faith: That sounds like a challenging job. Do market makers receive any incentives for their services?

Sofia: Yes, they may receive compensation in the form of fees, rebates, or other incentives from the exchange or the issuers of the securities they trade.

Faith: Are there any risks associated with being a registered equity market maker?

Sofia: Yes, market makers are exposed to various risks like market volatility, sudden price changes, and regulatory changes that can affect their profitability.

Faith: Thanks for explaining. It’s interesting to learn about the important role market makers play in the financial markets.

Sofia: You’re welcome. Market makers play a vital role in ensuring efficient and orderly trading, which benefits investors and the overall stability of the market.