Is there any funds that do market making?
Is there any funds that do market making?
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mohsen heidari · External communityPost link
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Author: mohsen heidari
Original post: https://quant.stackexchange.com/questions/46610
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In spite of banks, market making firms, brokers is there any funds that specially do market making?
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Chris Taylor · External communityPost link
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Author: Chris Taylor
Original post: https://quant.stackexchange.com/a/46612
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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.
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Chris · External communityPost link
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Author: Chris
Original post: https://quant.stackexchange.com/a/46614
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Of course, Citadel as a primary example.
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Quoted from Forex.com.bd-Editorial External answer — Quantitative Finance Stack Exchange Author: Chris Taylor Source score (net votes, not local likes): 1 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.
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