Market makers

I read recently that Market Makers are obliged to buy and sell stock. The book made reference to the US markets. My question is -

On the LSE do Market Makers exist and if they do, are they obliged to buy and sell stock?

Hope you can help me here.

simonfudge said:

I read recently that Market Makers are obliged to buy and sell stock. The book made reference to the US markets. My question is -

On the LSE do Market Makers exist and if they do, are they obliged to buy and sell stock?

Hope you can help me here.

Click to expand...

Market maker - Wikipedia, the free encyclopedia

In smaller companies there are market makers two way prices and they are obliged to deal in the prices they display in the size displayed, not the touch price. In larger stocks these are sort of a hybrid, you will see that they are like an order book but also there are market maker quotes, usually not at the touch, on the board and they are firm in these prices, again not the touch.

The same principle exists in many Govvie bond markets, certainly UK & Sweedish.

A Dashing Blade said:

The same principle exists in many Govvie bond markets, certainly UK & Sweedish.

Click to expand...

to all for your helpful replies

if you're a DMM (designeted market maker) on an exchnage you're obliged to make a 2-way tradeable price within certain spread parameter.s