Do all securities that trade on CBSX require a DPM (Designated Primary Market Maker)?
Yes, there is one of the currently seven 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.



Are there any incentives for me to consider becoming a CBSX DPM or RMM?
CBSX DPMs and RMMs who meet the LPGs are entitled to higher liquidity rebates relative to those participants with no market making responsibilities. Click here for the CBSX Fee Schedule and LPG Guidelines.



What obligations do CBSX DPMs and RMMs have to meet to qualify for higher liquidity rebates?
CBSX DPMs must meet the LPGs each day at the opening of the primary markets. In addition, in return for the higher rebates, CBSX DPMs are required to meet the LPGs in at least 90% of the instances when CBSX quotes do not otherwise meet the LPGs in each DPM's assigned security.



When/how is this measured?
CBSX DPMs' compliance with the LPGs is measured over a calendar quarter.



What are the obligations for a CBSX RMM to qualify for a higher liquidity rebate?
CBSX RMMs have no opening obligations in order to receive a higher RMM rebate:, however, CBSX RMMs are required to meet the LPGs in at least 50% of the instances when CBSX quotes do not otherwise meet the LPGs in the RMMs' appointed securities.



When/how are CBSX RMMs performance in this regard measured?
CBSX RMMs' performance will also be measured over a calendar quarter.



What happens if a CBSX DPM or RMM fails to meet the LPG standards?
If a CBSX DPM or RMM fails to meet these standards, the higher rebates for adding liquidity will be reduced for the following calendar quarter.