registered competitive market maker

Also found in: Acronyms.

Registered competitive market maker

An NASD-registered dealer who acts as a market maker for a designated over-the-counter stock by buying and selling that stock to maintain stability.

Registered Competitive Market Maker

1. A market maker registered with the National Association of Securities Dealers. As market makers, they seek to maintain stable prices by offering consistent buy and sell prices on over-the-counter trades. They list their bid and ask quotes on NASDAQ, which requires at least two registered competitive market makers per listed stock. Their bid and ask quotes are compared to ensure a representative spread.

2. See: Registered competitive trader. An independent member of the New York Stock Exchange, who does not represent a firm and who acts as his/her own broker. Registered competitive traders are expected to correct imbalances of orders. Because they do not pay commissions, they deal actively in stocks, but because they represent only themselves they account for less than 1% of trade volume. Orders from specialists take precedence over registered competitive traders. See also: Registered equity market maker.

registered competitive market maker

1. A dealer registered with the National Association of Securities Dealers to make a market in one or more securities. A registered competitive market maker must give the market firm bid and ask prices.
2. A floor trader on the New York Stock Exchange.
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