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Don

06/29/22 10:46 AM

#76965 RE: condor1 #76960

To your questions.
1) Finra issued an information notice in 2019 covering this topic. https://www.finra.org/rules-guidance/notices/information-notice-051019
2) The $2.50/share is a margin maintenance requirement placed on the entity shorting the shares. No money changes hands for this. There is no favorable treatment.
3,4) MM are permitted to make a market in a stock to provide liquidity. They can move the intraday price but only with a coparty to buy or sell. They normally do not carry their own inventory but buy/sell per their customer orders.