Anyone? I would like to get an idea if the option pricing at the close yesterday already represented the MM exemption--or not?
the short selling halt news came out friday morning, i received some info from the CBOE after the close friday stating the SEC (along with Brodsky, the ISE and many big brokerage houses) have recommended to Cox that the market marker exemption be extended. as for option pricing, you could see all the reversals trading for huge credits in MER, JPM and WM among others because of the ruling. it was heaven for some of us. http://sec.gov/news/press/2008/2008-211.htm
Of course they want to keep the extention as long as possible. Its like getting free money everyday for them. Its criminal that a market maker can make money doing the same thing I want to do but the govt says that I cant.
how are people suppose to make markets in options if you cant sell stock to hedge the trades??? . if there were no exemption it would be 1992 on the floor, $5 dollar wide markets and the DPM's would be quoting the minimum of ten up in the 799...now that is way better as a floor trader than an exemption
The market maker ponies up the cash for an exchange seat, and you don't. Exchange membership has it's privileges.