The FT gives us a new definition of market-making

According to the FT:  “The conflict between the concept of fiduciary duty and the practicalities of market-making, where a bank such as Goldman brings together a buyer and a seller of a security, appears to have been little understood by Congress.”

I guess every securities broker is actually a market maker — who knew?  In fact, if “security” isn’t a crucial part of that definition, maybe my local realtor is a market maker too.

To be more serious, it’s pretty obvious that the distinctions between “broker”, “dealer” and “market maker” are important in financial markets, and confusing the terms helps market makers avoid their responsibilities.

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