Lead Market Maker Definition
Learn the definition of lead market maker and other ETF terminology from the etf.com glossary.
Learn more about Lead Market Makers
The Lead Market Maker is a linchpin in the ETF ecosystem, playing a crucial role in optimizing liquidity and facilitating transparent price discovery. This designated participant assumes the responsibility of quoting bid and ask prices for ETF shares, ensuring a liquid market and competitive trading conditions. By actively participating in the creation and redemption process, the lead market maker bolsters market efficiency, contributing to seamless ETF trading. This role is instrumental in minimizing bid-ask spreads, enhancing overall liquidity, and providing investors with the confidence that they can readily buy or sell ETF shares at fair and efficient prices.
