The Market Making Scheme for French individual equity options and index options consists of a combination of Permanent Market Makers (PMMs) and Responding Market Makers (RMMs) who maintain two-way prices throughout the trading session and answer requests for quotes (RFQs) respectively, as well as the "Primary Liquidity Provider (PLP)" role.
Primary Liquidity Providers (PLP) provide quotes in a specified number of American style options (based on 12 blue chips divided in 4 groups) at specified maximum spreads and minimum quote sizes on all series open for trading and expiry months up to 13 months.
Permanent Market Makers (PMMs) provide quotes in a specified number of options at specified maximum spreads and minimum quote sizes in a specified number of series and expiry months for a specified proportion of the trading day. PMMs also respond to RFQs.
Responding Market Makers (RMMs) respond to RFQs in a specified number of options at specified maximum spreads and minimum quote sizes. RMMs must respond to RFQs on equity options on all the expiries up to a horizon of two years on all series and on the first five expiries on all series open for trading on CAC 40® index options. |