RE: Walked down21 Apr 2021 09:43
Russky - you post frequently about market makers, but you have a tendency to mischaracterise their activities, objectives and influence. MM p&l's are driven by flows not by price movement, and they are typically tightly constrained in terms of their available capital and risk appetite. For the most part they are price-takers not price-setters; content to mark their books at the point where both buyers and sellers are willing to transact. They make their money from the spread, not (other than in the very short term) from driving price action to suit their needs. Whilst there are a few examples of market makers going rogue and operating outside of regulatory parameters these are exceptions, not the norm. When a share price falls, it is far more likely to be an outcome of investor activity (ie selling) than market maker conspiracy. They are Remora fish not sharks...