IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

The Role of the Market Maker in International Capital Markets: Challenges and Benefits of Implementation in Emerging Markets

Listed author(s):
  • Marios Panayides


    (International Center for Finance, Yale University)

  • Andreas Charitou


    (Department of Business Administration, University of Cyprus)

Registered author(s):

    Different forms of market making systems can be found in most developed capital markets. These markets, instead of having a pure electronic limit order book design, follow one of three forms of market making: 1) a quote-driven market making system, 2)a centralized market making system in an order-driven market, and 3) a non-centralized market making system in an order-driven market. This paper analyzes and critically evaluates each system, especially in relation to the application of these designs in emerging capital markets. These countries, in an effort to restructure their market design into a more efficient and attractive venue for international investors, are required to adopt one of the three market making systems found mainly in developed countries. In this study we provide guidance to emerging market regulators for implementing a market making system and prescribe the factors that should be taken into consideration when redesigning their trading system. The challenges and benefits of such an application are set forward along with possible alternatives.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Yale School of Management in its series Yale School of Management Working Papers with number ysm443.

    in new window

    Date of creation: 28 Jul 2004
    Handle: RePEc:ysm:somwrk:ysm443
    Contact details of provider: Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ysm:somwrk:ysm443. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.