where to get the list of options DPM (designated market makers)

Discussion in 'Options' started by pbanerjee, Jan 30, 2015.

  1. CBOE publishes its list of DPM (designated market makers) for underlying equity on its website such as here: http://www.cboe.com/TradTool/Symbols/symbolall.aspx

    Anyone knows where I can find the list of DPMs for others exchanges - ISE , BATS, BOX, PHLX, ARCA/AMEX ?
     
  2. rmorse

    rmorse Sponsor

    Last edited: Jan 30, 2015
  3. robert, how would BATS and BOX options exchange get their liquidity in practice?
     
  4. rmorse

    rmorse Sponsor

    There is a difference between a market maker and a DMM, or what ever each exchange calls them. Each exchange allows registered broker dealers to rent a permit and make markets under their rules and obligations. A DMM has a higher level of expectation and responsibility. For that, they typically get an advantage over other market makers. EG, on the AMEX, you can make a deal with any MM you want. You can make them your DMM, they can take at least 40% of the order if they choose and are responsible for the payment for order flow. (The deal might be different now, I left in 2010 and that was the arrangement) These DMMs on the different exchanges have employees responsible for going out to the firms and convincing them to route orders to that exchange. It's a very competitive business and the PFOF dollars each month support lower retail commissions and higher profits for those retail firms and those that control the orders.

    To my knowledge, and I could be wrong, I think BOX and BATS have a different model.I'm not sure they have a PFOF program or DMM, just market makers. They compete with their maker/taker fee structure.

    I have been a little removed from the floor since 2010, I'm sure someone here will correct me if there have been changes.