Merrill Lynch had temporarily leased the bin 5 PMM trading rights to Citadel Derivatives Group LLC. Merrill Lynch currently serves as a Competitive Market Maker (CMM) in bins 1, 2, 3, 4, 7, 8, 9 and 10.
"We are pleased that Merrill Lynch has extended its market making presence at ISE. Merrill Lynch had significant experience making markets in equities when it first decided to enter the ISE market. The firm's decision to now serve as a Primary Market Maker, expanding its presence at ISE beyond its CMM operation, continues to ensure that options investors interact with the finest liquidity providers in the market," said Gary Katz, ISE's Chief Operating Officer.
Citadel serves as bin 8 PMM and as CMM in eight bins. The firm also has Electronic Access Member (EAM) privileges to route orders to ISE for execution.
Since ISE's launch on May 26, 2000, the exchange's low-cost, high-efficiency business model has attracted a new class of participants to the options market whose embrace of electronic trading has fundamentally changed the nature of US options trading. Until ISE was established, many firms that are now PMMs and CMMs had never before participated as market makers in the options market. Since such firms have entered the market, investors have benefited from greater liquidity, better prices, and increased competition.
