The Market Maker: Part 1 - Spencer Crooks, ex Director of Market Making at Winterfloods

This video can be seen at: https://www.piworld.co.uk/2019/11/29/the-market-maker-part-1-spencer-crooks-ex-director-of-market-making-at-winterfloods/ Spencer Crooks, ex Director of Market Making at Winterfloods talks to Tamzin Freeman, piworld. Spencer gives us a fascinating insight into the day in the life of a Market Maker. This is the first of two parts. The second part goes into more technical details of market making. Both parts are a must watch, to understand what’s going on behind the scenes to determine how stocks are priced. Spencer’s background – 00:22 What do Market Makers do? – 01:35 Risk management by Market Makers - 04:29 Market Makers: the institutions & retail - 06:22 Market Makers: the business model - 08:04 How do you set a price? - 11:37 How do you set the spread? - 14:32 How do you set the market size? - 16:11 The difference between quote driven or order driven stocks - 17:37 How helpful is Level 2 to the retail investor? – 19:18 The relationship with the broker – 21:40 What’s the relationship like between Market Makers? - 25:38 How large is the research function at Winterfloods? - 29:23 How many companies does an individual Market Maker cover? - 30:45 How is a stock priced on the morning of a profit warning? - 33:04 What makes a good market maker? - 35:34 About Spencer Crooks: Joined Bisgood Bishop in 1985. After takeover of Bisgood Bishop, traded at County NatWest until 1988, before leaving to join Winterflood Securities. Became a director in August 1999. Appointed FSI 2006.