Market Making Functions

 One of Spencer Edwards’ financial functions is a Market Maker.  Market makers are firms that maintain a firm bid and offer price in a given security by standing ready to buy or sell at publicly quoted prices.  The NASDAQ is a decentralized network of competitive market makers.  Market makers process orders for their own clients, and for other FINRA broker/dealers; all NASDAQ and OTC Bulletin Board securities are traded through market maker firms.  Market makers also buy securities for resale to clients or other broker/dealers.  Only about 10 percent of FINRA firms are Market Makers.  To be involved in the buying, selling or trading of securities, a firm must be registered with the Financial Industry Regulatory Authority (“FINRA”).  FINRA is a self-regulatory organization created by the Securities and Exchange Commission (“SEC”).  Brokers and dealers must follow all rules of the FINRA and SEC, including the FINRA's Conduct Rules and its rules for arbitration, complaints and dealings with the public.  A broker/dealer must also meet capitalization standards set down by the FINRA in order to operate as a market maker.