Specialists May Get a Break
Traders Magazine, May 2003
Amex options specialists and those at other options exchanges - upset that they continue to pay for order flow even as market makers take some of their orders - may be getting some relief. The American Stock Exchange Board has approved a rule that would increase the percentage a specialist receives, from 20 percent to 30 percent, in pits with a market maker crowd of seven people, according to Kim Atwater, a spokeswoman for the Amex. The rule is pending SEC approval. The deal, negotiated by specialists at the Amex, is a good one, according to a spokesman for the Options Market Maker Association at Amex.
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