Many equity markets employ designated market makers to supply additional liquidity for small and mid caps, and they use a hybrid trading system that combines continuous trading sessions and call auctions. We use data from Germany's Xetra system to analyze designated market maker activity in the...

Many equity markets combine continuous trading and call auctions. Oftentimes designated market makers (DMMs) supply additional liquidity. Whereas prior research has focused on their role in continuous trading, we provide a detailed analysis of their activity in call auctions. Using data from...

On many equity markets, designated market makers (DMMs) supply additional liquidity for small and mid cap stocks. Whereas prior research has focused on their role in continuous trading, we analyze their activity in call auctions. Using data from Germany's Xetra system, we find that DMMs are most...

Prior research has established that the presence of designated market makers (DMMs) in an electronic open limit order book increases liquidity. We analyze whether the presence of additional DMMs results in a further improvement in liquidity. Using data from Deutsche B ̈orse’s Xetra system we...