IMC is a Designated Market Maker (DMM) on the New York Stock Exchange, providing liquidity in over 550 NYSE listed securities.
DMMs perform a critical role in facilitating price discovery during market openings, closings and during periods of imbalance or volatility. DMMs have obligations to maintain fair and orderly markets at all times and under all circumstances. As a result, DMMs are integral to dampening volatility and providing liquidity.
IMC combines deep expertise in floor-based trading and electronic market making, with advanced technology, robust risk management and significant capital commitment. We consistently deploy that capability to serve issuers and market participants with superior pricing, enhanced liquidity and reliability.
Experience; IMC has been active in exchange-based trading for more than 30 years. We trade on more than 100 venues around the world and provide liquidity in more than 200,000 securities. As one of the world’s leading market makers, we provide issuers with information about market events in their stock, sectors and the broader markets, and we leverage our scale and expertise to enhance liquidity in listed companies for market participants.
Technology; IMC marries state-of-the-art technology with human expertise in the price discovery process. We deploy multiple algorithms to mitigate price and volume dislocations, ensuring tight spreads, liquidity and continuous trading. Our investments in technology position us to serve issuers and market participants with superior pricing, enhanced liquidity and reliability.
People; We believe our people play a vital role in price discovery, providing liquidity and ensuring orderly trading, particularly during times of extreme volatility and the opening and closing of trading. IMC’s experienced DMM team has been together for over 20 years, building deep relationships with issuing companies and market participants. That trust is earned on the back of ability and resources that we commit on their behalf to ensure liquidity in their stocks and avoid unnecessary volatility.
Capital; IMC is willing and ready to make a market at all times by committing substantial capital as a DMM. This process lowers transaction costs for market participants.
As a NYSE DMM, we meet all capital requirements required by the NYSE. We deploy our capital on an as-needed basis and do not have set limits on the amount of capital that we allocate to each security.
Since 2014, IMC has been awarded 66 new listings, including 37 IPOs representing $17.3 billion dollars raised. In addition, IMC has been selected as DMM to trade several spin-offs, including companies where the parent is traded by another DMM. This highlights the solid relationships we have with our portfolio of companies.
The average DMM panel at IMC consists of 44 diverse issues, which is well below the average of our competitors and provides ample capacity and attention to focus on a company’s IPO.
On a daily basis, our DMMs monitor macro, sector and stock specific news and have meetings with other sector traders. (S)he monitors trading patterns, technical support/resistance levels (50-day, 100-day & 200-day moving averages), sell-side research, peer activity and pre-/post-market trading.
We always meet the management teams of the companies we serve as DMM. In those meetings we identify a peer group, spend time on the NYSE trading floor to provide information about our market making capabilities and explain our algorithms, and discuss our expectations for your first day of trading. In addition, we attend company analyst meetings and industry conferences to keep abreast of developments in the sector.
As you might imagine, we have a valuable resource network. Each day, before the market opens, our DMMs meet to discuss trends such as sector rotations, broker concentrations, the interest rate environment, moving averages, support/resistance levels, options volumes, index rebalancing, earnings news and political events. The close proximity of our traders to one another facilities ongoing discussions throughout the trading day.
Our proprietary trading algorithms serve functions such as regulatory compliance, market maintenance, risk management, price improvement, order matching, quoting and quantitative strategies. Our regulatory and market maintenance strategies are employed at all times and are regularly tested. Strategies for new and current-traded companies are developed and back tested in concert with our Development and Quantitative Strategies teams using simulated and actual trading data. The results are compared to industry and trading peers. Only after thorough testing do we deploy an algorithm to trade one or a number of securities.
While low latency algorithms underpin our business, it is the high-touch participation of our DMMs that facilitates an orderly open and close of a stock each day. They also monitor order flow and trading activity to determine when and where to employ specific algorithms to lower volatility and increase liquidity in a security when needed.
Most order flow is institutional and sent into our systems as small lots, some of which are retail orders. We have several trading strategies that interact with this type of order flow to provide liquidity and dampen volatility.
We have long-standing relationships with the brokerage firms on the NYSE trading floor that handle corporate actions, such as secondary offerings and corporate buybacks. In parallel we review our market performance as a DMM on an ongoing basis. A recent study ICB1 demonstrated that a company we served as DMM saw cost savings of $1.2 million over the year as a result of IMC tightening spreads on the NYSE. Finally, the most important aspect of any corporate action is the real-time, proactive communication we have with listed companies regarding activity at point of sale
On a daily basis, you will receive a pre-market, midday and closing market update. This includes market information such as macro trends, earnings releases, economic data, international markets information and stock specific headlines. In addition, you will receive a tailored report at the end of each trading day with stock specific and peer information, including the daily performance, YTD % change, 1 month % change, 3 month % change, 52-week high / low, moving average, dividend yield and short interest as a % of float. On a periodic basis, we complete market quality studies, investor targeting analysis, share repurchase analysis and competitor analysis to support our listed companies.
Don is the Head of NYSE DMM Floor Operations at IMC and is responsible for the operation and risk management of the DMM business. Don graduated from Gettysburg College with a B.S. in Economics and Business Management and began his career in 1992. He became a Member of the Exchange in 1996 and was promoted to Head of NYSE DMM Floor Operations in 2003. Don serves as a NYSE Floor Governor and has his Series 7 (Registered Representative) and Series 24 (General Securities Principal) licenses.
Tom is the Head of NYSE DMM Corporate Relations at IMC and is responsible for maintaining relationships with the firm’s 550+ NYSE-listed issuers. In addition, he is responsible for new business development. Prior to joining the DMM business in 2000, Tom held positions in banking and investor relations and is a member of the National Investor Relations Institute. Tom earned a B.S. in Finance from Seton Hall University and an M.B.A. in International Business from Fairleigh Dickinson University.