Chapter 04 · Section 4.1

Market Maker vs. Specialist-1

What do the Competing Market Maker System and the Specialist system have in common?

b) Market makers have an obligation (i.e. not just the right) to quote according to certain requirements.
Yes. In both systems there are market makers specifically assigned to certain option classes. These market makers are not free to quote as they might wish. Their obligation to quote aims at increasing market liquidity. Continue
c) Instead of floor brokers there are market makers who have certain obligations to quote both buy and sell prices.