Composite Market Definition
The term Composite Market is used below in the presentation of Opening Information Dissemination, Maximum Width Checks and establishing Opening Collars. The following are the functions of the Composite Market in the Opening Process:
- The Composite Market Bid Price is used to look-up Maximum Width and Opening Collar Width values from published parameter tables.
- The width of the Composite Market is the width against which Maximum Width Checks are applied
- Opening Collars are positioned by centering the Opening Collar Width on the midpoint of the Composite Market.
The following table defines the Composite Market associated with each type of option class:
Prior to the end of the GTH Session, the Appointed Market Maker Quotes are the union of such quotes across both the live GTH book and the queuing RTH book. After the end of the GTH session, the best Appointed Market Maker Quote is sourced from the RTH queuing book exclusively. Note the Market Maker on each side may be different.
| Class | Composite Market Definition |
|---|---|
| Multi-list | Composite Market bid is the higher of the Appointed Market Maker Quote best-bid and the Away Best Bid (ABB), and the Composite Market offer is the lower of the Appointed Market Maker Quote best-offer and the Away Best Offer (ABO). Note the Appointed Market Maker on each side of the best Appointed Market Maker Quote may be different. |
| Proprietary Index Products | Composite Market is the best Appointed Market Maker Quote Bid and Offer in the book. Note the Market Maker on each side may be different. |