Prop Trading Firm Prime Trading Expands into Cboe Options Floor

Prime Trading has established a new floor operation at the Cboe Options Exchange, strengthening the firm's role in equity derivatives while signaling renewed interest in Chicago's long-standing open-outcry model.

The move comes two years after Cboe revamped its trading floor, drawing new market makers to a venue that continues to play a role in complex options trading. While electronic trading now accounts for the majority of volume, open-outcry floors remain valuable for executing larger or more intricate strategies across multiple strikes and expiries.

Prime has recruited several experienced traders to lead its effort in S&P 500 Index Options. The new team includes Mike Panos, Dan Scadron, and Chris Ries, all formerly with hedge fund Walleye Capital, along with Brad Heinz from market maker Old Mission. They will work under Prime Capital Markets, the firm's broker-dealer subsidiary.

"These recruits bring decades of experience in index options and volatility strategies," said Travis Aronson, director of business development at Prime. Aronson, who joined from Walleye last year to help build the equity derivatives business, added that the expansion reflects Prime's strategy to diversify its operations and deepen its involvement in the index options space.

The Cboe trading floor currently hosts around 200 market makers and brokers, including large players such as Citadel Securities, Optiver, and IMC. By joining the ranks, Prime enters a competitive arena where firms provide liquidity to institutional investors executing sizable or sophisticated orders.

Although many traditional trading pits have closed since the mid-1980s, when electronic platforms gained dominance, options markets have maintained a stronger open-outcry presence. In addition to Cboe's Chicago venue, options floors operate at the New York Stock Exchange, Nasdaq's PHLX in Philadelphia, and Box Options in Chicago. Miami International Group is also planning to introduce its own open-outcry floor in Miami.

Anthony Montesano, head of derivatives market structure at Cboe, welcomed Prime's participation, highlighting the caliber of activity in the S&P 500 pit. "It isn't every day that we see new market makers because of the commitment that it takes," he said, describing the SPX pit as home to "some of the most sophisticated and best traders in the world."