The International Securities Exchange (ISE) has established an alternative primary market maker program to support new listings. Under the programme, 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 PMMs, ISE is broadening the pool of potential liquidity providers eligible to support new product introductions.
Previously, the ISE was only able to introduce a new listing if an existing PMM expressed interest in quoting the product. With the new programme, existing PMMs retain the first right to any potential new listings but if no interest in quoting a new or existing product is shown, CMMs participants will have the opportunity to be designated as a PMM.
“Through the alternative primary market maker programme, we are adding greater flexibility to the product allocation and listing process,” said Boris Ilyevsky, managing director, ISE’s options exchange. “Since more firms can now qualify to act as primary liquidity providers, we expect interest in listing products to increase.”