Market Making

DBOT ATS supports FINRA market maker rules.

The following is a summary of current functionality available on the ATS:

Market Maker Registration Services:
  • Market Maker can enter and exit the service at will throughout the trading day if Globenet Exempt qualified or a form 15c2-11 was filed.
  • Register in as few or as many securities as desired.
  • Enter one-sided or two-sided quotes.
Market Making Order Capabilities:
  • View and enter orders on a real-time basis for all approved securities.
  • Update orders in domestic and foreign securities any time the system is in operation.
  • Advertise a general interest in trading of a security without specifying a price (unpriced quote) or zero.
  • Market maker display orders can be temporarily "closed" by firm MPID if the firm experiencing equipment problems’
  • Enforce minimum display tier sizes when updating display orders.
  • Provide one designated displayed order per security.
  • Bid & Ask – One displayed Order on each side of the market.

Broker Internalization Rule

Broker Internalization protection is managed by the pre-trade risk rules for the ATS. If an order for the same broker or user of the broker is going to trade against their own order, then the order will be crossed and an execution report will be sent back to the firm.

Broker Internalization checks only occur at the BBO (Best Bid Best Offer) of the ATS. Best executions will apply and external BBO data will be checked before the order is crossed.