Although market makers have certain advantages, if they blindly market, the result may not be worth the candle. It cannot be ignored that market makers go bankrupt from time to time in the world because of improper market making. In order to increase the liquidity of varieties, market makers must bear certain responsibilities, which is also the core of the market maker system. So, what conditions do market makers need to meet?

What conditions do market makers need to meet?

Participants who apply to become market makers of index futures and options should register with the exchange. Then pay 5 million Hong Kong dollars, improve the internal control and risk management system, have certain trading experience, and constantly improve their own relevant market arbitrage technology. Finally, it is necessary to have sufficient capital operation ability, and at the same time, market makers should have strong financial strength, so as to fulfill their market-making obligations and meet the needs of the market and investors.

In addition, market makers need to have high commercial reputation, so as to obtain strong financing ability; Relevant industry background. At the same time, we should have strong risk management ability and master professional trading technology to ensure that we can earn the bid-ask difference while fulfilling our obligations. Can reasonably judge its value, provide accurate quotations and stabilize market prices; It is essential for market makers to have strong risk management ability.