Designated Market Maker

Next video:
Loading the player...

A designated market maker, or DMM, maintains fair and orderly markets for an assigned set of listed firms. This also helps improve market liquidity. The New York Stock Exchange created this position in 2008 to offer better service than electronic-only platforms. The DMM is a point of contact for the listed company, and provides them with information such as trader sentiment and who has been trading the stock.


You May Also Like

Related Articles
  1. Investing

    What is the difference between a broker and a market maker?

  2. Term

    Designated Market Maker - DMM

  3. Investing

    Do traders, market makers, specialists or others ever deliberately drive a stock's ...

  4. Brokers

    What's the difference between a Nasdaq market maker and a NYSE specialist?

  5. Investing

    Is an earnings surprise priced into the opening value by market makers or does the ...

  6. Term

    Third Market Maker

  7. Term

    Market Maker

Trading Center

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!