CHARACTERISTICS OF THE SYSTEM
The Member Market Makers have to comply with some conditions for quoting that consequently bring up continuous prices on screen (c.f. quotation screens).
To meet these conditions the Market Makers have to quote, as a minimum, options on the IBEX 35 and on six shares (Telefónica, BBVA, SCH, Endesa, Iberdrola and Repsol). In all these they will quote at least six calls and six puts for the first three quarterly maturity dates and for options on the IBEX 35, they also have an obligation to quote the two monthly maturity dates. Due to the system of incentives that rewards the quote in more series and more underlying securities, the quotes on screen exceed the minimums by a large margin.
The quotations are for a minimum of contracts that varies in accordance with the underlying security. For the main stocks they are 100 contracts though generally quotes are held in the main series negotiated for several hundred contracts.
When the contracts have a life of less than seven days, the obligation to quote ends.
The Market Makers have to quote continuously over at least 70% of the duration of the session. In this aspect, too, the minimum is exceeded by a large margin.
MARKET MAKERS
MEFF has managed to offer to all the Members participating in the market high-quality screens with a range of options on a continuous basis thanks to the efforts of the Members that meet the conditions as Market Makers:
TRADING RULES
The Market Members load their orders and bids via the S/mart electronic trading system. Simple options are traded in this system.
We can see the liquidity shown in this market accessing Real time Quotes