CBOE Membership Votes to Expand Designated Primary Market Maker Program

The Chicago Board Options Exchange (CBOE) members today voted to approve a proposal to expand the Designated Primary Market Maker (DPM) system floor-wide, with 654 in favor and 372 opposed to the measure. The expansion is set to begin immediately with applications from CBOE members for DPM positions due tomorrow. The vote came after several months of informational meetings and discussion and following a review of the options industry by CBOE's strategic task force. "The fact that the CBOE membership has elected to change how they do business -- when volume is at record levels -- signals their ability to adapt quickly to a changing competitive landscape. Their willingness to look beyond the status quo is an important step in CBOE's continued leadership role," said William J. Brodsky, CBOE chairman and CEO. CBOE introduced the DPM program in 1987 in response to increased competition brought about by the introduction of multiple listing and new products. Since then, CBOE market makers and DPMs together enabled the exchange to grow amidst heightened competition. The DPM program, exclusive to the CBOE, works in conjunction with the market-maker system to provide a single point of contact and accountability for each option class. The expansion of the DPM program is part of CBOE's overall strategy to enhance its business model and provide a higher level of customer service to its member firms. CBOE, regulated by the Securities and Exchange Commission (SEC), is the pioneer of listed options and the world's largest options marketplace. For additional information about the CBOE and its products, visit the new CBOE web site at http://www.cboe.com.