The CBOE Stock Exchange, LLC (CBSX) announced today that it has appointed Timber Hill LLC, Susquehanna Investment Group, VDM Structured Products, LLC, LaBranche Structured Products, LLC, Equitec Specialists, LLC and Wolverine Trading, LLC, to serve as Designated Primary Market Makers (DPMs) on the new stock exchange that is scheduled to launch on February 5, 2007.
CBSX is a fully electronic, strict price-time priority market that will offer industry leading liquidity and market data rebates to all market participants. DPMs will receive the largest liquidity rebate of any CBSX market participant in exchange for stringent quoting obligations that create competitive and deep markets for traders seeking execution of large-sized orders at the best price. Other CBSX liquidity providers, including Remote Market Makers (RMMs) and all other liquidity providing market participants, will be competing on equal footing with DPMs for liquidity and market data rebates. Price-setting competition between CBSX liquidity providers will ensure the market's success as an automated trading center.
CBSX initially plans to offer trading in 2,800 of the most actively traded New York Stock Exchange, NASDAQ Stock Market, and American Stock Exchange listed securities, as well as Exchange Traded Funds (ETFs) and other listed securities. CBSX will be a Regulation NMS compliant trading center, and will employ the CBOEdirect trade engine, which currently is used by CBOE and the CBOE Futures Exchange (CFE).
