Remote Market Maker (RMM) is a new membership set up to allow individual market makers and member organizations to engage in market making at the Chicago Board Options Exchange (CBOE) from any location, in an attempt to add extra liquidity and depth to the Exchange’s markets.
The program is to form part of CBOE’s Hybrid Trading System, which was introduced in June 2003 as a combination of what the CBOE claim are the best features of both electronic trading and open outcry of human traders. The goal of the new RMM initiative is to enable RMMs to stream quotes and trade electronically from any location off the trading floor.
Initially, the CBOE said it plans to have 58 RMMs participating in the program, with further additions expected during the three month roll out.
