The New York Stock Exchange

Why NYSE

Market Model

The NYSE’s unique market model combines leading technology with human judgment to prioritize price discovery and stability over speed for our listed companies. Coupled with our electronic markets, we believe nothing can take the place of human insight and accountability. It's the human element at NYSE that results in lower volatility, deeper liquidity and improved prices.


How the NYSE Market Model Works

Designated Market Maker

The cornerstone of the NYSE market model is the Designated Market Maker (DMM). DMMs have obligations to maintain fair and orderly markets for their assigned securities. They operate both manually and electronically to facilitate price discovery during market opens, closes and during periods of trading imbalances or instability. This high touch approach is crucial for offering the best prices, dampening volatility, adding liquidity and enhancing value.

DMMs apply their market experience and judgment of dynamic trading conditions, macroeconomic news and industry-specific intelligence, to inform their decisions. A valuable resource for our listed company community, DMMs offer insights, while making capital commitments, maintaining market integrity, and supporting price discovery.

DMM roles and responsibilities


Our Model Results in Superior Market Quality

  • 40%
    Less Volatile
    on listing day
  • 34%
    Less Volatile
    during lock up expirations
  • 35%
    Less volatile
    at the Open
  • 39%
    Less Volatile
    at the Close

Model Benefits

NYSE Model
What is it Equities trading platform with added liquidity and designated market maker to maintain orderly trading
Model Hybrid electronic market with human oversight and accountability
Consulting Proactive market insight from the floor
Open Process Auction with DMM, underwriter, stabilization agent in control over time and price, influence on volume imbalances
Open Price DMM, underwriter, stabilization agent with Floor Community and other market participants to find best opening price
Objective Best opening price based on market supply/demand resulting in lower volatility
Results Flawless IPOs with an unparalleled listing experience and visibility throughout the development of your company

DMM Case Studies

Capital Commitments

Market Integrity

Communications

Earnings & Other Situations


Supplemental Liquidity Providers

Supplemental liquidity providers (SLPs) are electronic, high volume members incented to add liquidity on the NYSE and NYSE MKT. All NYSE and NYSE MKT stocks are eligible, but not all have SLPs. Supplemental liquidity providers are primarily found in more liquid stocks with greater than one million shares of average daily volume. They’re required to maintain a bid or offer at the National Best Bid or Offer (NBBO) in each assigned security at least 10 percent of the trading day.

See our SLP Fact Sheet


Floor Brokers

Floor brokers are employees of member firms who execute trades on the exchange floor on behalf of the firm's clients. They act as agents, buying and selling stock for the public (institutions, hedge funds, broker/dealers). Floor brokers are physically present on the trading floor and are active participants during NYSE and NYSE MKT’s opening and closing auctions, as well as throughout the trading day.

See NYSE Solutions for the C-Suite