Norwegian Market Maker Obligations

RMM: Obligation to continuously provide bid and ask prices

RMM shall, during not less than seventy-five per cent (75%) of the Exchange’s ordinary trading hours per calendar month, continuously quote in thirty-three (33) Series for the selected Primary Instruments. The RMM undertakes to quote pursuant to the following: Five (5) call option series, five (5) put option series and one (1) forwards/futures series regarding the three (3) quoted Expiration Months with the shortest Terms. The options series that shall be quoted for each term are the Series which is at-the-money, the Series which is closest to being in-the-money, and the three Series which are closest to being out-of-the-money. In cases where Series are not available for trading according to the above, the five Series nearest at-the-money shall be quoted for each term.

On the Expiration Day for a certain Series, the quoting obligation in accordance with the preceding paragraph shall relate to Series of the three (3) listed Expiration Months with the shortest Term, but without regard to the Series which has the current day as the Expiration Day.

AMM: Obligation to continuously provide bid and ask prices

AMM shall, during not less than eighty per cent (80%) of the Exchange’s ordinary trading hours per calendar month, continuously quote in up to seventy-five (75) Series for the selected Primary Instruments. The AMM undertakes to quote pursuant to the following: Seven (7) call option series, seven (7) put option series and one (1) forwards/futures series regarding the five (5) quoted Expiration Months with the shortest Terms. The options series that shall be quoted for each term are the Series which is at-the-money, the two Series which are closest to being in-the-money, and the four Series which are closest to being out-of-the-money. In cases where Series are not available for trading according to the above, the seven Series nearest at-the-money shall be quoted for each term.

On the Expiration Day for a certain Series, the quoting obligation in accordance with the preceding paragraph shall relate to Series of the five (5) listed Expiration Months with the shortest Term, but without regard to the Series which has the current day as the Expiration Day.
 

Spread Requirements:

Regular MM:

Options
Bid       Max spread
0 - 2         0.75
2 - 10       1.50
10 - 20     2.25
20 - 30     3.00
≥30          3.75

Stock futures/forwards
Bid        Max spread
0 - 200       3
≥200          4

Index futures
Bid         Max spread
0 - 150         0.75
150 - 350     1.10
350 - 500     1.60
500 - 700     2.50
700 - 850     3.00
850 - 1000   3.75
≥1000          5.00
 

Advanced MM:

Options:
Bid price       Max spread     Max spread
                    (≤ 3 months)   (> 3 months)
0 - 2                 0.60                1.20
2 -10                 1.25                2.50
10 - 20              1.75                3.50
20 - 30              2.50                5.00
≥30                   3.00                6.00
 

Stock futures/forwards
Bid price       Max spread      Max spread
                    (≤ 3 months)    (> 3 months)
0 – 100               1.50                3.00
100 - 200            2.50                5.00
≥200                   3.50                7.00
 

Index futures
Bid price       Max spread       Max spread
                    (≤ 3 months)     (> 3 months)
0 - 150                 0.60               1.20
150 - 350             0.90                1.80
350 - 500             1.30                2.60
500 - 700             2.00                4.00
700 - 850             2.50                5.00
850 - 1000           3.00                6.00
≥1000                  4.00                8.00
 

Evaluation/Follow up:
The above obligations start at the normal start of trading and supervision of the MM’s performance will be carried out continuously and compiled daily. A Market Maker Report is sent daily to the MM by e-mail. Evaluation of the MM performance is performed on a monthly basis.