In a letter filed with the SEC today, the FIA Principal Traders Group (FIA PTG) supported the Cboe's Proposal to add another compression tool. As they have stated previously, FIA PTG believes that compression is an important tool enabling Market Makers to manage the size of their portfolios and the clearing firm capital required to support them.
FIA PTG said, "To provide deep and continuous liquidity, it is essential that Market Makers can efficiently manage the capital and margin requirements of their portfolios. The Proposal further enhances the set of compression tools the Exchange offers to Market Makers by allowing for the compression of index options."
