Is there any funds that do market making?

External question — Quantitative Finance Stack Exchange Author: mohsen heidari Original post: https://quant.stackexchange.com/questions/46610 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. In spite of banks, market making firms, brokers is there any funds that specially do market making?

External answer — Quantitative Finance Stack Exchange Author: Chris Taylor Original post: https://quant.stackexchange.com/a/46612 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Yes, although they might not remain funds for very long. Market making is not a particularly capital intensive activity, and it can be quite profitable (or at least, rather risk-adjusted returns are high) so once the fund owners have accumulated some profit they will be incentivised to return outside capital and operate as a stand-alone business.

External answer — Quantitative Finance Stack Exchange Author: Chris Original post: https://quant.stackexchange.com/a/46614 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Of course, Citadel as a primary example.