Making a 2-way market with options

JSOP · Mar 5, 2021

ajacobson said:
@mskl is spot on. Paralax out of San Francisco is the poster child for this. They have become the third/fourth(depending on the day)largest MM acting as a professional customer. You'll need massive scale in technology and communications and when your all done you be tens of millions in infrastructure. Keep in mind 5 or 6 names are about half the exchange flow most days and they are probably equal size upstairs most days.
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But some of the spreads, oh man, are just too tempting...

Tony Optionaro · Mar 5, 2021

JSOP said:
But some of the spreads, oh man, are just too tempting...
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They're much tighter than they appear

tonyf · Mar 5, 2021

ajacobson said:
It is protectionist - so what? You have 16 competing exchanges
It was allowed by the ISE at one time and nobody came.
MM have to make markets - most folks who claim to be providing liquidity go back into the weeds when volatility spikes.
The CBOE consortium is a modest player and they're not the driving force here.
CBOE promoted the Professional Customer rule to accommodate folks who wanted it.
Join BOX as it costs very little, you still have a quoting requirement.
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Joining Box is an overkill - I would need to setup a US subsidiary and register with FINRA.
They should just loosed their grip - will be happy to join a class action to achieve this.

ajacobson · Mar 5, 2021

FINRA member is pretty much required to join any securities exchange.

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Making a 2-way market with options

JSOP

Tony Optionaro

tonyf

ajacobson