Market Makers

Registered CHX market makers in good standing are entitled to good faith margin consideration and to execute sell short orders submitted to the Matching System on zero-minus ticks. Market makers may trade only on a proprietary basis and may not handle agency orders on the Exchange.

Market makers must register with the Exchange to receive favorable exempt credit and short sale treatment. To obtain this treatment, market makers must submit their market maker orders to the CHX Matching System from a specifically-designated account. 

Market makers are obligated to contribute to the maintenance of fair and orderly markets. The Exchange has established specific performance standards to quantify that obligation. A market maker must (on a per security basis):

• Use an automated system to maintain a continuous two-sided principal quotation, for at least a round lot, in each of the securities in which it is registered;
  
  
• Maintain adequate minimum capital in accordance with Article 7; and
  
  
• Either (1) submit at least 5% of its quotations at prices which are at the NBBO or improve the NBBO in a manner that attributes market data revenue to the Exchange; or (2) trade at least 1% of the total number of shares executed on the Exchange.

As part of the continuous two-sided quotation requirement, market makers will be obligated to maintain quotes (reflect orders in the CHX Matching System) at prices which are reasonably related to the prevailing market prices in each security. 

A market maker may be involuntarily deregistered if it fails to meet these performance standards.

A complete description of market maker rights and obligations can be found in CHX Rules, Article 16.

CHX Market Maker Firms:

Chicago Capital Management, LP