Before revision: This paper studies the profitability of market making strategies and the impact of latencyon electronic market makers' profits for large-tick assets. By analyzing the optimal market making  problem using Markov Decision Processes , we provide simple conditions to determine when a market maker earns zero or positive profits and discuss economic implications.
After revision: This paper studies optimal market making problem using Markov Decision Processes , we provide simple conditions to determine when a market maker earns zero or positive profits and discuss economic implications.