A quote from the bbg article. "Today retail order-flow is purchased by large order internalizers and joining them would represent a conflict we do not wish to have. On the other hand, providing liquidity to sophisticated, professional synthesizers of short-term fundamental, technical and big data is not a profitable activity."
Is this the news that you are referring to? http://www.zerohedge.com/article/why-be-market-maker-when-you-can-just-be-hft-scalper It's really strange when I click on the link that says "tidbit by the WSJ" I reached a page that says "That article does not exist or is currently not available". And I searched over the Internet and there is no such information that says IB's quitting making market in options. And I can't see why since their Timber Hill is making money from order flows AND get better market spread from making market unless they are afraid the regulators is finally cracking down them for the potential conflict of interest in trading against their clients.
Let's face it , IB made the big bucks when they had the big tech edge for decades. That candy has left the station long ago.