My understanding is that Market Makers only operate in the Bonds, Options, Derivatives markets on the ASX (not in Equities/Stocks).
The variable liquidity in equity markets is driven by basic supply and demand constraints. This is unavoidable with equities, particularly when the issuer has a small market capitalisation and low number of shares on issue. You can’t create liquidity if shares are tightly held and nobody wants to buy or sell.
But there is a very large group of investment & trading securities on the ASX where the supply & demand equation is fundamentally different to listed equities. These investment products are brought to ASX by banks, fund managers and other product manufacturers, and some are ASX products. From the outset ASX requires that there are Market Makers in place to support liquidity in the market for these investment products, because they are not constrained in the same way as equities in terms of supply and demand.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)