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What Are the Regulatory Requirements for a Market Maker in the US Options Market?

US market makers must register, meet capital requirements, maintain competitive quotes (affirmative obligation), and avoid manipulation.
Greeks.Live11.11.25

What Are the Regulatory Requirements for a Market Maker in the US Options Market?

US options market makers must register with the SEC and FINRA, adhere to strict capital requirements, and comply with rules like Reg NMS. They have 'affirmative' obligations to maintain continuous, competitive two-sided quotes and 'negative' obligations not to engage in manipulative practices like front-running or spoofing.

Their activities are subject to intense surveillance.

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