Direct Answer
17 SEC filers are classified under the Standard Industrial Classification code that describes the market makers industry, and their latest annual reports show $261.8 billion of combined revenue and a median operating margin of 12.9%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Market makers continuously quote buy and sell prices in stocks, options and other instruments and earn the bid-ask spread on high volumes. Volatility and volume drive revenue, and technology and risk control are essential. The first numbers to compare across companies here are net trading revenue, volume traded and revenue per share or contract.
Key Industry Metrics
- Net trading revenue: Income from capturing spreads and trading profit after hedging costs. It follows volume and volatility, and can vary day to day.
- Volume traded: Shares, contracts or notional value traded. It shows the scale of activity, and is the main source of volume-based revenue.
- Revenue per share or contract: Income earned per unit traded, after costs. It reflects spread, competition and risk control, and can fall when markets are quiet.
- Technology and clearing cost: Spending on systems, exchange connectivity and clearing. It is a large fixed cost, and speed advantages depend on it.
- Capital deployed: Money used to hold positions and meet margin needs. It shows risk-taking, and sets how much activity the firm can support.
Primary Macro Drivers
- Market volume and volatility: Trading volume and swings create more chances to earn the bid-ask spread, so volumes and volatility lift net trading revenue.
- Spread levels: Narrower spreads cut revenue per share or contract, so spread levels set what each trade earns.
- Retail order flow: Brokers route retail orders to market makers, so retail flow adds volume at profitable spreads, shown in volume traded.
- Regulation: Rules on order routing, tick sizes and disclosure shape the economics of trades. Watch regulatory proposals and revenue per share or contract.
Major Risks
- Trading losses in dislocations: Sudden price gaps or illiquid markets can cause losses on inventory held. Watch trading revenue volatility and risk disclosures.
- Spread compression: Competition and tick size rules can reduce the spread on each trade. Watch revenue per share or contract and volume traded.
- Regulatory changes in order routing: New rules on order routing or payments for orders could reduce flow or margins. Watch regulatory proposals and revenue sensitivity.
- Technology failures: Software faults can cause large trading losses within minutes and disrupt markets. Watch technology spending and incident disclosures.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Low |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | Global |
Market Makers Filers in the SEC Record
17 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6211. Their latest fiscal years end in 2025, and together they reported $261.8 billion of revenue. Median revenue growth over the prior year was 19.6%. Median operating margin was 12.9% and median net margin 10.2%. Median total liabilities were 81% of total assets, and 14 of 17 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Morgan Stanley | $70.6 billion | 14.4% | n/a | 23.9% | FY 2025 |
| Galaxy Digital Inc. | $60.4 billion | 41.8% | n/a | -0.4% | FY 2025 |
| Goldman Sachs Group Inc | $58.3 billion | 8.9% | n/a | 29.5% | FY 2025 |
| Blackrock, Inc. | $24.2 billion | 89.3% | 29.1% | 22.9% | FY 2025 |
| Raymond James Financial Inc | $15.9 billion | 6.6% | n/a | 13.4% | FY 2025 |
| Jefferies Financial Group Inc. | $10.8 billion | 2.9% | n/a | 6.3% | FY 2025 |
| Stifel Financial Corp | $6.3 billion | 6.7% | n/a | 10.2% | FY 2025 |
| Robinhood Markets, Inc. | $4.5 billion | 51.6% | n/a | 42.1% | FY 2025 |
The 8 largest of 17 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Market Makers guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Market Makers industry?
Key performance indicators for the Market Makers industry include: Net trading revenue, Volume traded, Revenue per share or contract, Technology and clearing cost, Capital deployed. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Market Makers industry?
The Market Makers industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Market Makers industry?
The primary risks for Market Makers companies include: Trading losses in dislocations, Spread compression, Regulatory changes in order routing, Technology failures. Investors should assess each company's exposure to these factors and its track record of navigating them.