|
A Market Maker is defined as an OTP Holder or OTP Firm registered with NYSE Arca for the purpose of submitting quotes electronically and making transactions as a dealer-specialist through the new trading platform from on or off the trading floor. A Market Maker on NYSE Arca is either a Market Maker or a Lead Market Maker.
Appointment of Market Makers
Market Makers are required to apply for an appointment in one or more options classes. NYSE Arca will appoint one LMM per option class and an unlimited number of Market Makers in each class.
The number of issues per OTP that a Market Maker may select for its appointment is as follows:
|
Number of OTPs
|
Option Issues in Appointment
|
|
1
|
100
|
|
2
|
250
|
|
3
|
750
|
|
4
|
All issues
|
Market Makers may select from among any option issues traded on NYSE Arca for inclusion in their appointment. Market Makers are permitted to change the option issues that are included in their appointment.
Market Makers are required to trade at least 75% of their contract volume per quarter in classes within their appointment. Trades done on the Trading Floor to accommodate cross trades, regardless of whether the trades are in issues within or without a Market Maker’s appointment, are excluded from this calculation.
Market Maker Quotations
Market Makers will only be permitted to enter quotations in the issues included in their appointment. If Market Makers wish to trade issues outside their primary, they must do so by entering orders.
Lead Market Makers. A Lead Market Maker must provide continuous two-sided quotations throughout the trading day in its appointed issues for 99% of the time the Exchange is open for trading in each issue. These obligations will apply to all of the Lead Market Maker’s appointed issues collectively, rather than on an issue-by-issue basis. Compliance with this obligation will be determined on a per-calendar-quarter basis.
Market Makers. A Market Maker must provide continuous two-sided quotations throughout the trading day in its appointed issues for 60% of the time the Exchange is open for trading in each issue. These obligations will apply to all of the Market Maker’s appointed issues collectively, rather than on an issue-by-issue basis. Compliance with this obligation will be determined on a per-calendar-quarter basis.
OTP Orientation and Testing
Market Maker Authorized Traders and Authorized Traders are required to pass either the Series 7 or Series 44 examination. The Series 44 is required for Market Makers; the Series 7 is required for order entry firms. Both tests are multiple choice; applicants must achieve a score of 70% or higher on the Series 7 examination and/or 75% or higher on the Series 44 examination to pass. Once the exchange has received the application and Options Orientation Fee, the applicant will be sent a Training Manual. The test is administered at FINRA offices nationwide.
If you have questions regarding the application process, please e-mail your questions to crs@nyx.com.
|
