Market Makers are a special category of membership charged with maintaining trading liquidity on the exchange and are available to qualified institutions.
Market Makers earn their income by profits generated from their market making activities. Any firm wishing to be a Market Maker on the exchange must agree to certain conditions, specified by the exchange, for Market Makers. These entail making a continual two-way market (bid-and-offer), and guaranteeing a minimum number of contracts for each bid or offer they make. These conditions are pre-agreed between the exchange and the market maker as pre-specified in the bye laws and rules. Market Makers are required to have accounts with a Clearing Member in order to clear their trades.