FROZ Market Maker Breakdown:
There have been a lot of questions about what the mms are and what role they are playing from newer traders. I've posted something similar before and just saw this on another board so I am going to pass it along:
"I'm sure most know the TOP Market Makers but the following just might help some out:
The OTC Players
There are three different types of players in the marketplace:
Market Makers (MM) - These are the players who provide liquidity in the marketplace. This means that they are required to buy when nobody else is buying and sell when nobody else is selling. They make the market. In other words, the Market Maker buys and sells the stock to brokerage firms.
Electronic Communication Networks (ECN) - It is an electronic system that brings buyers and sellers together for the electronic execution of trades. It disseminates information to interested parties about the orders entered into the network and allows these orders to be executed. It is important to note that anyone can trade through ECNs, even large institutional traders.
Wholesalers (Order flow firms) - Many online brokers sell their order flow to wholesalers; these order flow firms then execute orders on behalf of online brokers (usually retail traders).
The Ax
The most important market maker to look for is called the AX. This is the market maker that controls the price action in a given stock. You can find out which market maker this is by watching the level II action for a few days - the market maker who consistently dominates the price action is the ax. The ax isn't always trading the stock in one direction or another. Sometime he is keeping it in a tight range and sometimes he is not there at all and another ax may step forward. Note that there are times where there is no ax present. The point is the AX is the one to watch closer than all other parties or MMs. Many day traders make sure to trade with the ax because it typically results in a higher probability of success. Note that the ax is not static. On any given day any party can be an ax, there may be one ax in the morning and another in the afternoon. If a big order comes onto the trading desk of a firm that doesn't do big volume in a certain name, the ax will take care of it and command the action. An ax can easily use an ECN to hide much of their action. They can and will use fake outs. Keeping an eye on Level 2 will reveal the ax.
Each market participant is recognized by the four-letter ID that appears on level II quotes. Here are some of the most popular ones: NITE, ETRD, SCHB, TDCM & ARCA.
NITE - wholesaler
SCHB - wholesaler
TDCM - retailer
ETRD - retail ECN
ARCA - an ECN
NITE: This is the king MM of the OTCBB. He intimides traders and other MMs use that to their advantage knowing that he scares them. That's why NITE is the shaker on most stock runs; he is the most common ax. NITE could be on the ASK all the time, he could be leading a dip scaring sellers to SCHB and TDCM on the bid.
Electronic Communication Networks (ECN): ARCA, BRUT, BTRD, INCA, INTL, ISLD, REDI
Wholesalers: ETRD, HRZG, MASH, NITE, SHWB
Big Shorters: JIMK, POND, GNET or ARCA (anyone can use GNET, even other MMs because it's an ECN).
TDCM - Retailer MM.
Top Retail Dilutor: ACAP, AGIS, BAMM, BMIC, CHIG, CLYP, FANC, FRAN, JIMK, MAYF, NATL, PERT, SACM, UCAP, VERT, VFIN
Biggest OTCBB ECNs: GNET, TRAC & DATA
OTC Bulletin Board Market Maker List
ABLE - Natexis Bleichroeder Inc.
AUTO - Automated Trading Desk
BEST - Bear, Stearns and Co Inc.
BMIC - Biltmore International Corpor
BOFA - Banc of America Securities
DOMS - Domestic Securities, Inc.
EDGX - Direct Edge ECN LLC
ETRD – E-Trade Capital Markets LLC
GARC - ICAP Corporates LLC
GNLN - Gunnallen Financial, Inc.
HDSN - Hudson Securities, Inc.
HILL - Hill, Thompson, Magid and Co.
LABS - LaBranche Financial Services
MAXM - Maxim Group LLC
MERI - Merriman Curhan Ford & Co.
MURF - Murphy and Durieu
NITE - Knight Equity Markets, L.P.
PERT- Pershing LLC
SALI - Sterne, Agee & Leach, Inc.
SSGI - Seton Securities Group Inc.
STEW Collins Stewart LLC
UBSS UBS Securities LLC
VERT - The Vertical Trading Group
VFIN - vFinance Investments, Inc.
VIEW - Viewtrade Securities, Inc.
VNDM -Vandham Securities"
