Specialists' Role Declines At NYSE Arca for Options
Traders Magazine, January 2008
NYSE Arca, in the latest of a series of moves that diminish the stature of its options specialists, or lead market makers, proposes to reduce their quoting requirements. Under the proposal, which needs Securities and Exchange Commission approval, the exchange would require lead market makers to quote two-sided markets only 90 percent of the time. That is down from a current 99 percent. At NYSE Arca, 11 lead market makers and 26 "regular" market makers support 2,100 options series. The 55 regular market makers are required to quote continuous two-sided markets 60 percent of the time.
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