Interdealer Trading
Last updated
Last updated
The market structure within the FM platform is based on distinct customer roles. Liquidity Takers, who are the customers, do not trade directly with each other. Instead, they only trade with Maker or Master accounts. On the other hand, Maker and Master accounts can trade both with Liquidity Takers and with each other. When Makers trade with each other or with Master accounts acting as Makers, these trades are categorized as interdealer trades.
The term interdealer trades refers to trades made between two users who act as Makers on the Finery Markets platform. In simpler terms, these trades occur between two Makers, where one user acts as the Liquidity Taker (who would otherwise be a Maker) and the other acts as a Maker, either through a Maker account or a Master account. Finery Markets encourages Makers to trade with each other and with Master accounts by offering economic incentives (refer to the for more details).
Examples of all possible trade scenarios on the FM platform are provided in the table below. You may need them to determine the trade type (interdealer or non-interdealer).
Table 1. "Types of trading".
Master A
1
Master A
Sub-taker of Master A
2
Master A
Taker B
3
Master A
Own sub-taker of Master E if Master E also acts as a Maker
3.1
Master A
Other sub-takers of Master E
4
Master A
Sub-taker of Master B if Master B doesn’t act as a Maker
5
Master A
Taker account of Maker D
Yes
6
Master A
Sub-taker of Master A, if this sub-taker also acts as a Maker
Sub-maker of Master A
7
Sub-maker of Master A
Sub-taker A
8
Sub-maker of Master A
Taker B
9
Sub-maker of Master A
Own sub-taker of Master E, if Master E also acts as a Maker
9.1
Sub-maker of Master A
Other sub-takers Master E, if Master E also acts as a Maker
10
Sub-maker of Master A
Own sub-taker of Master B if Master B doesn’t act as a Maker
10.1
Sub-maker of Master A
Other sub-takers of Master B if Master B doesn’t act as a Maker
11
Sub-maker of Master A
Taker account of Maker D
12
Sub-maker of Master A
Sub-taker of Master A, if this sub-taker also acts as a Maker.
13
Sub-maker of Master A
Sub-taker of Master B, if this sub-taker also acts as a Maker.
Maker C
13
Maker C
Taker B
14
Maker C
Own sub-taker of Master A if Master A also acts as a Maker
14.1
Maker C
Other sub-takers of Master A, if Master A also acts as a Maker
15
Maker C
Own sub-taker of Master B, if Master B doesn’t act as a Maker
15.1
Maker C
Other sub-takers of Master B if Master B doesn’t act as a Maker
16
Maker C
Taker account of Maker D
Yes
17
Maker C
Sub-taker of Master A, if this sub-taker also acts as a Maker.