Wikipedia's article on "Market Makers" says of the NYSE: In the United States, the New York Stock Exchange and American Stock Exchange (AMEX), among others, have designated market makers, formerly known as "specialists", who act as the official market maker for a given security. The market makers provide a required amount of liquidity to the security's market, and take the other side of trades when there are short-term buy-and-sell-side imbalances in customer orders. In return, the specialist is granted various informational and trade execution advantages. Presumably one "trade execution" advantage would be low cost to place orders and execute trades. What are NYSE market makers paying to execute trades? What are they paying to place orders? What are they paying to cancel orders?
The answers to my questions are under "Fees and Credits applicable to Designated Market Makers (“DMMs”)". Thanks!
nothing on the contrary they are paid to place orders.......because they provide a service: that service is making the market.