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chemist72

07/23/22 9:12 AM

#57018 RE: SooS416 #57017

So basically, MMs are conduits to the trading floor/platform.

However, the order flow would be different for retail vs. institutions or large* investors.

Here's how I picture it:

retail order ---> broker (e-trade, TDA, etc.) ---> MM ---> trade executed

institution ---> MM ---> trade executed

So institutions/large* investors can bypass a traditional/retail broker because institutional MMs are associated with large financial companies that have their own brokerage-type services for large*, monied investors/customers.

*large meaning ultra-rich individuals