The International Securities Exchange (ISE ) announced today that it has established an Alternative Primary Market Maker program. Under this program, ISE's Competitive Market Makers (CMM) will be eligible to serve as the Primary Market Maker (PMM) in certain options products and will assume the associated quoting responsibilities and order allocation privileges. By extending the number of firms who can act as PMM, ISE is broadening the pool of potential liquidity providers eligible to support new product introductions.
Boris Ilyevsky, Managing Director of ISE's options exchange, said, "Through the Alternative Primary Market Maker program, we are adding greater flexibility to the product allocation and listing process. Since more firms can now qualify to act as primary liquidity providers, we expect interest in listing products to increase."
Previously, ISE was only able to introduce a new listing if an existing PMM expressed interest in quoting the product. With the new program, existing PMMs retain the first right to any potential new listings. However, if existing PMMs do not have interest in quoting a new or existing product, CMMs who are participants in the Alternative Primary Market Maker program have the opportunity to be designated as PMM. The Alternative Primary Market Maker program applies to equity, ETF, and index options products.
For more information about the Alternative Primary Market Maker Program, please contact bizdev@ise.com.