Trading firms active on major options exchanges are beginning to merge. According to DW sister publication Wall Street Letter, many New York Stock Exchange specialist firms, which also have operations on the four major options exchanges, have been looking to get bigger. Susquehanna Investment Group was rumored last week to be in talks to acquire Beartooth Capital, a designated primary market maker (DPM) on the floor of the Chicago Board Options Exchange. Acquiring Beartooth would give Susquehanna control of options on Yahoo! Inc., Hewlett-Packard Co., and The Home Depot, Inc.
Van Der Moolen Specialists recently acquired Cohen, Duffy, McGowan & Co., an options specialist on the American Stock Exchange, and the company's ceo, Fred Boettcher, has said the firm is actively looking to acquire more option trading firms on the CBOE, AMEX, and Philadelphia Stock Exchange.
