Against the Tide
Options Exchanges Strive to Capture Blocks from OTC Market
Traders Magazine, August 2009
In March, the Chicago Board Options Exchange asked the Securities and Exchange Commission to permit CBOE members to hedge an options position before actually taking on the position. The practice, known as 'anticipatory hedging' or pre-hedging, has long been barred on the nation's options exchanges due to concerns about front-running.
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