RE: Halifax28 Aug 2019 09:46
Petro Matad are one of the 157 AIM companies on SETS. This is not some sort of game played by bored market makers.
(Rather than simply five market makers providing five bids and five offers for a particular security on SEAQ, for example, the SETS order book represents all registered offers and bids at a selection of different prices from whoever has access and a desire to transact, as orders can be placed by brokers, market makers, traders and private individuals directly.
The operation of SETS is automated and, as such, much more efficient. Moreover, it drives down the costs associated with the risks taken by market makers to facilitate the market, such as the size of the spread. It also provides investors a close-up view of the equilibrium of the market, depicting the balance of supply and demand for a particular stock. In turn, this offers an insight as to how the price might move in the short-term.)