What obligations do regulated market makers have?

Regulated market makers have a fundamental obligation to ensure liquidity and facilitate trading in the markets they are involved in. One of their key responsibilities is to participate actively during continuous trading hours. This requirement ensures that there are always buy and sell quotes available in the market, which helps promote efficient price discovery and provides traders with the ability to execute their trades without significant delays. By remaining engaged throughout the trading session, market makers contribute to a more stable and transparent market environment.

The other options focus on selective participation or quoting practices that would undermine the consistent accessibility of the market. Market makers cannot choose to quote only in favorable conditions, as this would limit liquidity. Similarly, maintaining only two simultaneous quotes or participating at will would not fulfill their obligation to support ongoing market operations effectively. The essence of being a market maker is the commitment to active participation to uphold the integrity and efficiency of the trading environment.