i am metaphysically a call option and i will maximize volatility
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an example of this is purge ports, something unique to options, they're a dedicated connect that skips the regular message queue so that MMs can kill their quotes en masse, no such thing exists in equities. here's a doc for the CBOE purge port for example: https://cdn.cboe.com/resources/features/Cboe_USO_PurgePortsFAQs.pdf …
this implies that while an equities MM has to care a ton about making sure their quotes are super up-to-the-microsecond recent so as not to get picked off by an aggressor on-exchange, the options MM can just kill and reprice the whole chain if they think they'll be picked off
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disclosure, i am not an options MM by profession so perhaps take the above with a grain of salt, i have only seen this from the buyside/"end-user" POV myself
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cc
@theemilyaccount to factcheck/own me on any mistakes above lol - Show replies
New conversation -
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If symbol XYZ moves and I’m quoting 5000 instruments tied to that symbol, it seems very useful to be able to move my prices by groups, rather than on a 1:1 basis. This isn’t unique to CBOE and seems pretty reasonable. Without efficient methods to update, spreads would be wider
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