IMC Chicago LLC is taking steps to become a Designated Market Maker (DMM) by acquiring the Goldman Sachs DMM trading rights. According to a release from The New York Stock Exchange (NYSE) and IMC Financial Markets (IMC), a global market making firm, IMC will be the DMM for more than 630 securities and approximately 400 operating companies. This should include many U.S. and international blue chip corporations.
The transaction is expected to close in the third quarter. Financial terms of the transaction were not disclosed.
IMCs new role as a Designated Market Maker on the NYSE further enhances our companys longstanding commitment to transparent and efficient markets for the benefit of issuers and investors, said Scott Knudsen, managing director and head of trading at IMC Chicago. IMC has 25 years of experience in floor trading and market making, and is well-positioned to serve issuers and investors with superior pricing, liquidity and reliability.
IMC calls itself one of the largest market making firms in the world, with diverse multi-asset operations on more than 100 exchanges around the globe. IMC claims to provide liquidity in more than 200,000 securities and is a significant liquidity provider in the U.S. on NYSE Arca, NASDAQ, BATS, CBOE, CME Group, and ICE exchanges, among others.
DMMS provide a human touch on todays electronic trading floors. As NYSe explians it, At the center of NYSEs market model, DMMs combine human expertise with advanced technology to meet definitive obligations to maintain a fair and orderly market. Proven to enhance overall market quality in NYSE-listed issues, DMMs are among the most active trading firms on the NYSE, consistently quoting at the National Best Bid and Offer (NBBO) and facilitating price discovery during opening and closing auctions and market imbalances.
We welcome IMC, a recognized innovator in market making globally, to the floor of the NYSE as a Designated Market Maker, said Joseph Mecane, executive vice president and head of equities, New York Stock Exchange. The addition of IMC, a firm focused on making markets, will further strengthen the NYSEs unique listing and trading experience where dedicated liquidity providers, customer agents and market participants meet to trade NYSE-listed issues in an open, transparent and fair marketplace.
IMC plans to work closely with Goldman Sachs to conduct a phased transition to the IMC technology and customer service platform upon completion of the transaction. The Goldman Sachs DMM business team is expected to join IMC as part of the transaction, including floor traders and corporate relations staff. Issuers will continue working with the same personnel they are already familiar with and can expect the same consistency in service and communication in working with the IMC team both during and after the transition.
Goldman Sachs will continue to operate its existing brokerage unit on the NYSE trading floor as well as maintaining its liquidity providing roles as Supplemental Liquidity Provider (SLP) on the NYSE and a Lead Market Maker on NYSE Arca.
Given IMCs specialized focus on market making and already extensive exchange-based trading operations, we believe IMC is best suited to drive the NYSE DMM business forward, said Todd Hohman, managing director and global head of the Quantitative Trading business at Goldman Sachs. Our top priority is continued high-quality service for the issuers that we serve as DMM and we will work closely with IMC and NYSE towards a seamless transition.
