The Archipelago Exchange (ArcaEx), has launched a new market making program aiming to encourage additional price improvement and supplemental liquidity for stocks traded on ArcaEx. The program is subject to approval by the Securities and Exchange Commission (SEC).
“We are redefining our existing market making capabilities to provide enhanced liquidity to the benefit of both corporate issuers and investors,” said Mike Cormack, president of Archipelago. “Additionally, our market making functionality is linked to our electronic best execution model ensuring that better priced orders on the ArcaEx book or in the national market are not overlooked. Displayed limit orders will retain standing on a price and time priority basis.”
By protecting best prices on all markets, ArcaEx’s aims to enable clients to achieve enhanced execution quality and comply with the trade-through protections approved by the SEC in Regulation National Market System (also known as Reg NMS) to be implemented in April 2006.