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Would they though? If settlement was instantaneous for market makers, then obviously settlement with the brokerages would also have to be instantaneous. Then
by snoshy 6y ago
Would they though? If settlement was instantaneous for market makers, then obviously settlement with the brokerages would also have to be instantaneous. Then it's no longer an issue of verifying anything, the risk of proving ownership would fall squarely on the brokerages or whoever is initiating the trade with the market maker in the first place.
- acover 6y agoI don't understand your question. If settlement was instantaneous then to sell a stock on an exchange you'd have to have the stock. To buy you'd have to have cash. Currently market makers don't have either.