Electronic market making firm GETCO has expanded its liquidity provision responsibilities on the New York Stock Exchange with the purchase of Bank of America Merrill Lynch’s designated market making unit.
On completion, the deal makes GETCO the second largest DMM on NYSE, with 850 stocks spanning 650 companies listed on the US exchange. It will assume responsibilities for its new DMM assignments on a rolling basis throughout December.
“NYSE has brought the floor model into the digital age by synthesising best-in-class technology with the unique perspective of the individual market maker,” said Daniel B. Coleman, global head of equities and client services at GETCO.
“NYSE’s high-tech, high-touch model is a strong fit for our approach to market making, and we are pleased to expand the services we offer to a wider range of investors and issuers. Many companies are looking for a way to navigate today’s complex marketplace and our global scale allows us to provide them with increased liquidity, better pricing and unique market insights.”
Lawrence Leibowitz, COO, NYSE Euronext and head of global cash markets, said GETCO had demonstrated strong performance as a NYSE designated market maker, with a track record of market-making expertise, technology innovation and relationships with issuers.
“We are extremely grateful to BofA Merrill Lynch for its outstanding service to our market and customers, and we look forward to working with both companies toward a smooth and orderly transition,” said Leibowitz.
GETCO first assumed DMM responsibilities on NYSE in February 2010 and has since served as the DMM for 30 high-volume issues, including the record US$20.1 billion IPO of General Motors in November last year.
DMMs are required to maintain a fair and orderly market for NYSE-listed securities via physical and electronic auctions, based on the depth and continuity standards set by the exchange.
In addition to NYSE, GETCO acts as a market maker on US exchanges including NYSE Arca, Nasdaq and BATS’ exchanges.