Optimal Market Technologies Launches New Options Platform
What happened
Optimal Market Technologies has launched a new options execution platform with backing from several leading global market makers. The platform introduces a Competition for Order Flow (CFOF) model designed to address execution challenges in U.S. listed options. The launch represents new competition and technological innovation within the market execution space.
Why it matters
- The platform is backed by prominent market makers including Optiver, Virtu Financial, Akuna, and BSC Ventures, who are also investors in the company. - Optimal Market Technologies was spun out of RQD* Clearing, a company also founded by Optimal's CEO, Brian Donnelly, who previously established the options market maker Volant Trading. - The "Competition for Order Flow" (CFOF) model will allocate retail options orders to multiple "primary market makers" on a name-by-name basis, based on rolling execution quality metrics. Order flow will be reallocated monthly based on which firms deliver better outcomes. - Initially, the platform's primary market makers will include Akuna, Belvedere Trading, Group One Trading, Optiver, and Virtu. - The venture aims to challenge the dominance of Citadel Securities, IMC, and Jane Street in the retail options order flow market; these three firms will reportedly not be allowed on the platform at the outset. - In the fourth quarter of 2025, the largest electronic liquidity providers paid $841.1 million to retail brokers for 1.97 billion routed options contracts. Citadel Securities accounted for 34% of the contracts executed, followed by IMC with 25% and Jane Street with 13%. - The CFOF model is designed to allow market makers to concentrate on products where they have a competitive advantage, rather than requiring them to quote the entire list of names to receive meaningful order flow. - The platform's performance scorecard uses an exponentially weighted moving average with a six-week half-life to smooth execution quality data, a feature designed to make the system difficult to game with short-term pricing strategies.
Key numbers
- In the fourth quarter of 2025, the largest electronic liquidity providers paid $841.1 million to retail brokers for 1.97 billion routed options contracts.
- Citadel Securities accounted for 34% of the contracts executed, followed by IMC with 25% and Jane Street with 13%.
What happens next
- The "Competition for Order Flow" (CFOF) model will allocate retail options orders to multiple "primary market makers" on a name-by-name basis, based on rolling execution quality metrics.
- Order flow will be reallocated monthly based on which firms deliver better outcomes.
- Initially, the platform's primary market makers will include Akuna, Belvedere Trading, Group One Trading, Optiver, and Virtu.
Quick answers
What happened in Optimal Market Technologies Launches New Options Platform?
Optimal Market Technologies has launched a new options execution platform with backing from several leading global market makers. The platform introduces a Competition for Order Flow (CFOF) model designed to address execution challenges in U.S. listed options. The launch represents new competition and technological innovation within the market execution space.
Why does Optimal Market Technologies Launches New Options Platform matter?
The platform is backed by prominent market makers including Optiver, Virtu Financial, Akuna, and BSC Ventures, who are also investors in the company. Optimal Market Technologies was spun out of RQD* Clearing, a company also founded by Optimal's CEO, Brian Donnelly, who previously established the options market maker Volant Trading. The "Competition for Order Flow" (CFOF) model will allocate retail options orders to multiple "primary market makers" on a name-by-name basis, based on rolling execution quality metrics. Order flow will be reallocated monthly based on which firms deliver better outcomes. Initially, the platform's primary market makers will include Akuna, Belvedere Trading, Group One Trading, Optiver, and Virtu. The venture aims to challenge the dominance of Citadel Securities, IMC, and Jane Street in the retail options order flow market; these three firms will reportedly not be allowed on the platform at the outset. In the fourth quarter of 2025, the largest electronic liquidity providers paid $841.1 million to retail brokers for 1.97 billion routed options contracts. Citadel Securities accounted for 34% of the contracts executed, followed by IMC with 25% and Jane Street with 13%. The CFOF model is designed to allow market makers to concentrate on products where they have a competitive advantage, rather than requiring them to quote the entire list of names to receive meaningful order flow. The platform's performance scorecard uses an exponentially weighted moving average with a six-week half-life to smooth execution quality data, a feature designed to make the system difficult to game with short-term pricing strategies.
