I am a bit confused when you talk about option "dark pools," since options must trade on a listed exchange.
They are able to cross the trade electronically on a few different exchanges. There is the possibility of being broken up on part of the trade. 1245
+1 Entirely agreed from an IB point of view. A never ending "one size fits all" internal platform battle, forcing as many regions as possible onto the same poor fit global non-solution. The opportunity cost is a travesty.
I think you'll find the hairiest knuckle dragging sales trader still out earns the best quant programmers, even in a bad year.
Sure, most of them can't be bothered about PMM role. Doing some MM stuff only to collect rebates to fund index arb. What's the difference in your view?
Most of the ibanks couldn't fulfill their PMM obligations without being arb'd to zero by prop firms with better technology. Banks MM for market share, to facilitate customer flow, to build a relationship with an issuer, or to bid their own warrants. It's not the primary business. How do you see it from the prop shop perspective? Sounds like you're in HK
Any IBD can cross an option between customer and post to the exchange (as long as it's within NBBO), most large guys internalize option flow. Is there something different about Knight? Actually, maybe there is. Let me check it out, I know someone who has a reasonable clue.
Exactly the same. When I learned how one of the biggest european banks update its quotes I was a bit shocked. They fit vol curve in Excel and send vol per strike to Orc. No wonder they would be arbed if they quoted tighter. I'm in Oz. But most prop shops and ibanks trade HK from Oz.