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Nasdaq Market Maker vs. NYSE Specialist: What's the Difference?
By THE INVESTOPEDIA TEAM Updated October 26, 2021
Reviewed by SOMER ANDERSON
Fact checked by KATRINA MUNICHIELLO

Nasdaq Market Maker vs. NYSE Specialist: An Overview

The New York Stock Exchange (NYSE) and National Association of Securities Dealers Automated Quotations (NASDAQ) each employ market makers—dealers or traders whose role is to increase the liquidity of their respective exchanges, provide more fluid and efficient trading, and maintain a fair and orderly market.

The goal of facilitating a smooth flow of financial markets is the same for both Nasdaq market makers and NYSE specialists. So the differences between market makers and specialists have more to do with the characteristics of the exchanges themselves than with their basic functions.

Market Makers and Specialists

The NYSE operates with a system of individual securities "specialists" who work on the NYSE trading floor and specialize in facilitating trades of specific stocks.

In contrast, Nasdaq is an electronic market (basically, a computer network) that does not have a trading floor. Instead, Nasdaq relies on multiple market makers—major broker-dealer members of Nasdaq—for actively traded stocks.