A market maker is a person who buys or sells ETF units on a stock exchange. What exactly is a market maker, though? What precisely do they do, and what exactly are they in charge of?
A market maker, also known as a designated broker (DB), is a broker/dealer or investment firm that ensures the continuing and efficient exchange of shares between buyers and sellers when an ETF trades. They achieve this in a variety of methods, including providing market liquidity by selling units to investors who want to purchase and buying units from investors who want to sell.