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.
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
Specialists and OBOs have one thing in common: there is one specialist or OBO per option series. In both systems, there are several floor brokers and market makers.
The role of the OBO (Order Book Official) is to handle the order book and to record the execution of orders.