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Market Making

Matt Levine, Bloomberg, Market-Making Is Making Markets, here.

I’ve been on a servicey kick lately so today I’m going to do something really simple and servicey and tell you what “market-making” is. Fortunately, the definition is right there in the name. “Market-making” is the job, or hobby,of making markets. What a market-maker does is make markets.

Here is not what a market-maker does:

Nope! A market-maker makes markets. What is a market? Here is a market:2

This caption is a little superfluous but here we are.This caption is a little superfluous but here we are.

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