Chapter 04 · Section 4.1

Specialist vs. Order Book Official

Which of the following are differences between a Specialist ,in the Specialist System used on PHLX and AMEX, for instance, and an Order Book Official(OBO) in the Competing Market Maker System used on the CBOE)?

a) Specialists may trade for their own account; OBOs may not.
• b) OBOs may trade for their own account; Specialists may not.
  No. OBOs are in charge of the order book for a specific option class. OBOs are exchange employees and apart from keeping the order book, they also handle and record the execution of orders. Would you let them trade for themselves?
  c) Specialists are exchange employees; OBOs are employed by a member firm.
  d) OBOs are exchange employees; specialists are employed by a member firm.
  e) Specialists are assigned specific option classes; OBOs are not.
  f) a and d

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