​Debate Grows Over DPM Role As CBOE Changes Rules

A rule change put forward by the Chicago Board Options Exchange recently has sparked debate around the fairness of what some feel is an overly friendly market maker environment. In one corner, advisories such as SpiderRock Advisory claim CBOE has systematically advanced the interests of the large liquidity providers over smaller players. Some designated primary market makers, however, believe the increasing sophistication of some algorithmic trading has some non-professional accounts acting like liquidity providers.