Posted in Finance, Accounting and Economics Terms, Total Reads: 400
A saitori is a member of Japan’s Tokyo Stock Exchange who matches buy and sell orders and facilitates trading as well as promotion of liquidity on the exchange. Saitoris improve market efficiency by matching supply and demand.
Saitoris usually specialize in trading of certain listed securities. Their role is to facilitate trading, place bids on behalf of clients, ensure that clients get best prices, and contain buying or selling spree by trading out of their own inventory. They ensure that transactions are executed properly on the exchange.
The role of a Saitori is similar to that of a specialist in New York Stock Exchange (NYSE). A NYSE specialist is also a market maker who facilitates trading on the exchange. However, specialists are allowed to trade only for their clients and are not allowed to trade for their own accounts. Saitoris are relatively less regulated on this front.