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Designated Market Makers (DMMs) will play a vital, two-fold role in the efficient functioning of Jiway through procedures designed to provide liquidity and best prices.
In creating a continuous flow of activity by competing for investor orders in Jiway traded stocks, the Market Makers will ensure liquidity in the marketplace. This liquidity will be available from day one of trading and is key to investors being able to trade shares across multiple markets. Following the launch of Jiway in November 2000, brokers will progressively be able to offer clients around 6,000 securities from 8 countries.
Jiway’s market maker quoting and order handling procedures are also designed to offer customers execution at the best price, which is unique for retail investors. The Market Maker will ensure that the relevant price being traded is not inferior to the price quoted by the local exchange for the quoted volume. If the local exchange offers a better price, the Market Maker will be required to match it.
Jiway has signed Letters of Intent with: United Kingdom: Winterflood Securities Morgan Stanley Dean Witter & Co; United States: Bernard L. Madoff Investment Securities Germany: Commerzbank Securities Lang & Schwarz Wertpapierhandel AG; France: Morgan Stanley Dean Witter & Co; Sweden: Enskilda Securities AB and Holland: Van der Moolen Holding NV.
Discussions are at an advanced stage with potential Market Makers for the Nasdaq, Italian and Swiss markets.
Per Swensson, Chief Executive of Jiway, said, "In February 2000 we declared our unique vision of providing a system that would be the much-needed solution to retail share-trading in Europe. We then announced an exceptionally low wholesale price for cross-border stock trading. Now we are delivering the cornerstone to any marketplace: liquidity from day one.
"Some of the most experienced and respected market players in the world have expressed their confidence and belief in our vision by signing Letters of Intent. Jiway is far more than just an ingenious idea: it’s a highly efficient reality for the private investor that removes the current complexities of cross-border trading. We chose these Market Makers because they are the leaders in their particular segment of the market and all have a strong financial and technological capability."
Bernard L. Madoff, Chairman of Madoff Securities, said, "One important element of the globalisation of securities markets has been the expanded interest that investors around the world have shown in the US equities market. Madoff is dedicated to bringing the best prices and excellent execution to investors in US equities and Jiway offers the most straightforward, cost effective method of accessing the US market for retail investors in Europe. We look forward to working closely with Jiway to ensure the best deal for European investors in the US."
Danny Hegglin, Head of European Trading at Morgan Stanley Dean Witter, said, "We are excited at the prospect of becoming a market maker for Jiway and look forward to playing this key role in the development of efficient cross-border trading for the retail broking community in Europe. Morgan Stanley Dean Witter has a well established and successful trading business in Europe and, as such, we are well poised to play this pivotal role. Morgan Stanley Dean Witter’s continued support of Jiway is further evidence of our commitment to provide our clients with innovative ways to access markets."
