Masterrsi20 Nov 2025 11:53
Seen as though you are a Big Fan of AI, and agree with Tim and believe you are clever than all at MM activity i thought id use your biggest strength, against you. Here is the result of can MM dictate the Sets Trading Platform like Tim suggested, and you agreed
No, market makers do not dictate a system for electronic trading (SETS) platform; rather, the platform's design and regulations determine the market makers' role and obligations. Modern trading platforms, like the London Stock Exchange's SETS, are primarily order-driven, which reduces the reliance on traditional, manual market makers.
Key Points on SETS and Market Makers
Order-Driven System: SETS (Stock Exchange Electronic Trading Service) is an order-driven market, meaning that buy and sell orders from all participants (both retail and institutional) are placed on a central electronic order book and automatically matched. This system bypasses the need for a market maker in every transaction, increasing efficiency and narrowing bid-ask spreads.
Reduced Influence: In a pure order-driven system, market makers have significantly less individual influence over pricing and order flow compared to traditional "quote-driven" markets (like SETSqx, the LSE's less liquid market for small-cap shares).
Role of Market Makers Today: While their overall influence on price is diminished in highly liquid, automated markets, market makers still play an important role.
Liquidity Provision: They are obligated to provide continuous quotes and inject liquidity, especially during periods of low volume or high volatility, to ensure orderly trading.
Regulatory Framework: Their activities are governed by strict rules and regulations set by authorities like the Financial Conduct Authority (FCA) to prevent market manipulation.
Automation: Most market making is now automated using sophisticated algorithms, which further reduces the "human" ability to dictate a platform's overall function or prices in major stocks.
Platform Functionality: The trading system's functionality, including rules on minimum quote sizes and volatility curbs, defines the market maker's minimum requirements, not the other way around.