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| Specialist Market Maker |
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The Exchange has established a specialist market maker program
for aluminum to help maintain market liquidity. The specialist market maker
on the New York Mercantile Exchange is one of any number of traders buying
and selling the contract who steps in to ensure liquidity should it become
necessary. By providing a price or a market, the specialist market maker
ensures that any market participant is able to get into or out of a position
at any time in the event there is no participant available to take the opposite
side of the trade. This intervention allows for smooth trading and, over
time, builds confidence in the contract which in turn attracts additional
liquidity.
As a result of the success of the program, a reasonable level of open interest
has developed in the contract, with growing volume indicating increasing
market confidence in this relatively new contract. |
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