Do all securities that trade on CBSX require a DPM (Designated Primary Market Maker)?
Yes, there is one of the currently five approved CBSX DPM organizations assigned to each security.
Does a CBSX DPM need to maintain a floor presence?
No. On December 19, 2007, the SEC approved CBSX's proposal to eliminate the requirement that CBSX DPMs maintain a floor presence.
What is the CBSX DPM trading obligation?
CBSX DPMs have the responsibility for maintaining a fair and orderly market ensuring that there is a continuous two-sided market and by responding to RFQs (request for quote).
What is the CBSX RMM trading obligation?
CBSX RMMs have the right to quote or enter orders in any and all securities on CBSX, but must trade 75% of their CBSX share volume in their appointed securities. CBSX RMMs are obligated to respond to RFQs in their appointed securities when they are quoting those securities.
What are Liquidity Provider Guidelines (LPGs)?
"LPGs" are standards that set forth the bid/ask spreads and sizes that will be disseminated by CBSX.
Do they apply to both CBSX DPMs and RMMs?
Yes, the LPGs obligate both CBSX DPMs and RMMs to make principal, two-sided, two-tiered markets whenever the CBSX markets would become wider than those allowed by the LPGs.
What are the LPG requirements?
Under the LPGs, CBSX DPMs and RMMs will be required to make principal two-sided, two-tiered markets by posting an inside market that will satisfy smaller orders seeking a narrow bid/ask spread, and an outside market that will accommodate executions for larger orders at a wider spread.
What are the price/size requirements of the LPGs?
The price characteristics and size requirements of the LPGs are structured according to volume and the unique price qualities of each security.
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