Market Makers are a special category of membership charged with maintaining trading liquidity on the exchange and are available to qualified institutions.
Market Makers earn income in the following manner:
• By profits generated from their market-making activities. Any firm wishing to be a Market Maker on the exchange must agree to certain conditions, specified by the exchange, for Market Makers. These entail making a continual two-way market (bid-and-offer), and guaranteeing a minimum number of contracts for each bid or offer they make. These conditions are pre-agreed between the exchange and the market maker. Market makers are required to have accounts with a Clearing House in order to clear their trades.