What is The Role of Supplemental Liquidity Providers?

Business & Management
#1

The NYSE’s supplemental liquidity providers are another group that functions similarly to specialized units (SLPs). These are high-volume members of the exchange who are paid by the NYSE to maintain low bid-ask spreads in certain, heavily traded securities by filling incoming orders with their own stock. The objective of the exchange is to increase liquidity at each price level. 4 While SLPs often trade from their own accounts, the NYSE argues that SLPs have access to the same publicly available trading information as other NYSE customers, not more.