The Chicago Board Options Exchange (CBOE) is proposing to amend its rules relating to Market-Makers and Remote Market-Makers (RMMs) by eliminating the RMM category. The category was established in 2005 to allow market participants to stream electronic quotations from outside of the physical trading station for an option class. At the time, Market-Makers were restricted from submitting electronic quotations from a location outside of the physical trading station but, over time, the CBOE has amended its rules to permit Market-Makers to submit electronic quotations from off the trading floor. While on the floor, a Market-Maker is not required to be in the trading station where a class is located in order to stream electronic quotations. As a result, the obligations of Market-Makers and RMMs are now generally the same and there is no reason to maintain the RMM category.

The CBOE is proposing to amend the definition of Market-Maker to include member organizations. The CBOE also proposes to amend its rules to allow any member organization that is the owner or lessee of more than one membership to designate one individual to be the nominee for all memberships utilized by the organization. However, for each membership utilized for trading in open outcry on the trading floor, the organization must designate a different individual to be the nominee for each of the memberships. The CBOE also proposes to update and amend its rules pertaining to the appointment of Market-Makers to (i) provide that appointments can be selected by Market-Makers or made by CBOE, (ii) delete the requirement that a Market-Maker may hold an appointment in an appropriate number of Hybrid option classes that are located at one trading station, and (iii) extend for an additional year the pilot programs set forth in CBOE Rule 8.3.

http://www.sec.gov/rules/sro/cboe/2008/34-57367.pdf