Market Making in Hong Kong: A New Frontier for Exchange Participants?
The proliferation of automated trading systems has accelerated competition across the financial industry. Continued global economic instability, domestic civil unrest and the recent pandemic have weakened balance sheets for less established firms. Many have looked afresh at opportunities to diversify the scope of their services while leveraging existing resources. Market making — which traditionally does not depend on any specific informational advantages — might be a viable option worthy of attention. This article, and the key trends and drivers described herein, explores the changing nature of the market-making industry as well as broader implications for market functioning and robustness in increasingly turbulent trading cycles.
Sidley Austin LLP provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice or to create a lawyer-client relationship.
Attorney Advertising - For purposes of compliance with New York State Bar rules, our headquarters are Sidley Austin LLP, 787 Seventh Avenue, New York, NY 10019, 212.839.5300; One South Dearborn, Chicago, IL 60603, 312.853.7000; and 1501 K Street, N.W., Washington, D.C. 20005, 202.736.8000.