Definition of 'Third Market Maker'

A third-party securities dealer that is ready and willing to buy or sell stocks listed on exchanges at publicly quoted prices. Third market makers add liquidity to financial markets by facilitating buy and sell orders even if there isn't a buyer or seller immediately available for the other side of the transaction. Third market makers make a profit from their roles as intermediaries by buying low and selling high. They also place trades for brokers on exchanges of which that broker is not a member