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Liquidity Providers

Designated Primary Market Maker Program (DPM)

A "Designated Primary Market-Maker" or "DPM" is a Trading Permit Holder organization that is approved by the Exchange to function in allocated securities as a Market-Maker on the trading floor. DPMs may apply to be allocated new listings (or classes being reallocated from another DPM organization) through an exchange sponsored solicitation process. Authorized Exchange staff will allocate the products based on performance, capacity, performance commitments, efficiency, competitiveness, and operational factors. Each DPM organization must have the appropriate number of Market Maker Permits to cover the cost of their option class allocations.

  1. Only one DPM may be appointed per class.
  2. A DPM's allocation in an option class or group of classes is non-transferable unless approved by the Exchange.

Steps to Establishing a DPM Organization

  • Review Cboe Rules 8.80-8.91 to verify eligibility and become familiar with Exchange expectations. Please contact Richard Fuller (312-786-7835) with additional questions.
  • Complete all necessary paperwork with TPH Administration and have at least one Market Maker Permit. Please contact Richard Fuller with additional questions (312-786-7835).
  • File an application with authorized Exchange staff to become a new DPM. Application forms may be obtained from TPH Administration, located on the 6th Floor, Cboe. Please contact Richard Fuller with additional questions (312-786-7835).
  • Contact appropriate departmental staff regarding technological, operational and logistical requirements (see contact list below).
  • Authorized Exchange staff will review proposal and/or completed application, and invite the applicant for an interview.
  • Authorized Exchange staff will approve/deny request for DPM approval.
  • Approved DPMs may apply for new option class allocations through the authorized Exchange staff solicitation and approval process. The exchange lists on average 20 new classes every month, and all new DPMs are encouraged to participate in the solicitation and application process.

Market Maker (MM) Program

The MM program allows Trading Permit Holders (TPH) and TPH organizations to stream quotes into designated Hybrid classes from locations on or off of the trading floor. MMs will be enabled to create customized class appointments, called virtual trading crowds ("VTCs"), which will allow them to cover a range of classes regardless of their geographic locations. Currently, only MMs that are physically present on the trading floor can trade in the non-Hybrid product SPX. Only effective MM TPH and MM TPH Organizations will be eligible to apply for VTC appointments.

All registration/application forms can be found on our site at Cboe Trading Permit Holder Document Library.

Lead Market Maker (LMM) Program