NYSE Arca Equities Market Making

The all-electronic NYSE Arca relies on a system of competing Market Makers to provide a fast, efficient, and consistent marketplace for all participants, including liquidity providers. Market Makers are required to maintain adequate minimum capital and continuous, two-sided identified and displayed quotes for all registered securities during Core Trading Hours (9:30 a.m. to 4:00 p.m. ET). They also clear and settle transactions through a registered clearing agency.

NYSE Arca appoints Lead Market Makers (LMMs) for ETPs (Exchange Traded Products) with a primary listing on the exchange to meet defined obligations in exchange for incentives such as lower transaction fees. For more information, please review the NYSE Arca Product Brief: Lead Market Making (pdf).

Market Maker Capital Requirements
Market Makers subject to the Aggregate Indebtedness Requirement maintain minimum net capital that is the greater of:

  • $100,000
  • $2,500 for each security that it is registered as a Market Maker (unless a security in which it makes a market has a market value of $5 or less. In this event the amount of net capital shall be not less than $1,000 for each such security) based on the average number of securities that such Market Maker is registered during the 30 days immediately preceding the computation date;
  • 6 2/3 percent of aggregate indebtedness
  • the amount prescribed by SEC Rule 15c3-1

Market Makers subject to the Alternative Net Capital Requirement maintain minimum net capital that is the greater of:

  • $250,000
  • 2 percent of aggregate indebtedness
  • the amount prescribed by SEC Rule 15c3-1

Become a NYSE Arca Market Maker
Eligible traders can apply in writing to register as Market Maker Authorized Traders (MMAT). Market Makers must meet rigorous education, training, and testing requirements to obtain NYSE Arca Equity Trading Permits (ETP), register in a given security, and remain in good standing with NYSE Arca thereafter to perform market-making activities.

The NYSE Arca Market Maker Orientation is an introduction to NYSE Arca Market Maker access, obligations, requirements and order types. Please review and certify that you have completed and understand the policies and procedures set forth in the Market Maker Orientation by signing the last page of the PowerPoint and returning to Client Relationship Services by fax or email at (312) 960-9647 or crs@nyx.com.

NYSE Arca will review this document upon receipt, and Market Maker Registration becomes effective when the applicant receives approval notice from the NYSE Arca.

Next, please complete the Application for Market Maker Registration* (pdf) or the Application to Become a Lead Market Maker in a Particular NYSE Arca Primary Listed Security** (pdf)

Substantial or continued failure to engage in dealings in accordance with NYSE Arca rules will result in suspension or termination of Market Making status. Any registered Market Maker may withdraw registration by giving written notice to NYSE Arca, and the withdrawal becomes effective on the tenth business day following the NYSE Arca's receipt of the notice. After the withdrawal, the ETP holder shall not be permitted to re-register as a Market Maker for a period of six months.

MMATs must not be subject to statutory disqualifications.

RELATED DOCUMENTS:
Application for Market Maker Registration*
Application to Become a Lead Market Maker in a Particular NYSE Arca Primary Listed Security**

*Includes Market Maker and Lead Market Maker
**Must be an existing Lead Market Maker ETP in order to submit this application for a green sheet posting