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Matching Algorithms

Matching Algorithms for CBOE Hybrid 4.0 classes (excludes SPX)

For all non-penny classes, the matching algorithm is as follows:

  1. Resting non-professional public customer order(s) is(are) filled.
  2. If on CBOE BBO, Preferred Market Maker (PMM) is allocated 40% of remainder, or pro-rata, whichever is greater.
  3. If no PMM and if on CBOE BBO, DPM(s) is(are)allocated 30% of remainder, or pro-rata, whichever is greater.
  4. Any remaining is allocated pro-rata.

For all penny-classes, the matching algorithm is as follows:

  1. Resting non-professional public customer order(s) is(are) filled.
  2. Market Turner is allocated 50% of remainder.
  3. If on CBOE BBO, PMM is allocated 40% of remainder, or pro-rata, whichever is greater.
  4. If no PMM and if on CBOE BBO, DPM(s) is(are)allocated 30% of remainder.
  5. Remainder is allocated pro-rata to other participants plus market turner if he still has size.
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