<t>I'd like to write some thoughts myself here. The key difference between exchange options and OTC options is liquidity. Exchange options is more liquid, many investors and other market makers trade on them, thus there is "market quotes". Similar to cash equity market making, market maker would foc...

<t>Thanks DominicConnor. In OTC market it mainly focuses on customerized requirements, the market maker usually need to price the exotics or illiquid products. So need to build the vol surface based on the liquid and reliable quotes in market, e.g. the ATM, RR25 and BF25 in FX market. So the main ri...

<t>Some institutions are running exchange listed option market making automatically, like Citadel.There are lots complicated things for options market making in OTC market, like modeling the volatility surface, hedging Greeks, calculating risks for options portfolio, pnl attribution to Greeks, and e...