Who is recognized as a market maker or specialist in listed options?

A market maker or specialist in listed options plays a crucial role in providing liquidity to the options market. This entity, often referred to as an options dealer, is responsible for facilitating the buying and selling of options contracts by offering to buy and sell those contracts at specified prices. The options dealer ensures that there is a consistent flow of options available for trading, which helps maintain market efficiency and stability.

The role of an options dealer includes quoting prices at which they are willing to buy and sell options, thus making it easier for traders and investors to execute their trades. They also take on the risk of holding options positions, which allows them to fulfill their obligation to provide liquidity, especially during times of high volatility when trading volumes may fluctuate significantly.

Securities traders, stockbrokers, and investment advisors all play important roles in the financial markets, but they do not specifically serve as market makers or specialists for listed options. Instead, they may act as intermediaries or provide advice, while options dealers are the ones actively participating in the market to enhance liquidity and efficiency.