10/09/2002
Prospective market makers should explain how they would fulfill the role with respect to maintaining trading volume and bid-ask spreads, the options structures that might be used, how they would respond to abnormal market conditions, and their physical infrastructure including trading floor and back office support staffing levels.
The primary market maker for calendar spread options must maintain an orderly two-sided market during regular trading hours consisting of a current bid and offer quote for the market maker's proprietary account on a request-for-quote basis at all times. Applicants must consider providing representation in calendar spread options markets for all of the following: crude oil, natural gas, unleaded gasoline, and heating oil.
Submissions should include a brief company profile. All proposals will be reviewed under strict confidence.
The deadline for submissions is October 31, 2002.