Does every stock market in the world have market maker/specialist?
I've been reading on "bid-ask" topics and they keep mentioning market maker/specialist. My question is, does every single stock market in the world have market maker/specialist (e.g. KLSE, SGX)? Do they share common responsibilities?
As I know, yes. The market wouldn´t work without MM/Specialist. They have to buy/sell when there is else no buyer/seller. They can also manipulate the price through special trading technics and they do it period.
The main role of the Specialist/MM is to help maintain an orderly market. This would include managing a order book, provide liquidity when necessary, and also the various clerical tasks associated with this function. This role has changed dramatically over the past couple of decades with the ever increasing role of technology, regulation, globalization, new electronic exchanges and products such as crossing systems, etc. These advances have consistently removed order flow away from the official exchanges. This evolution in the markets have had an impact on the responsibilities of the Spec/MM. So to answer your question, yes all official Exchanges have Specialists/MM of some type or another but they do not necessarily share the same responsibilities and/or rules in the global market place. I hope this helps.