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Quantitative Finance · Glossary

What is Electronic market maker?

Definition 1.1 Market Making and High-Frequency Trading · Chapter 1 — The Business of Market Making

An electronic market maker is a firm that provides liquidity by algorithm: its quotes, their sizes and their revisions are set by programs that react to market data in microseconds to milliseconds, across many instruments and venues at once, with humans supervising the programs rather than the quotes.

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