Side-by-side trading

From MarketsWiki
Jump to: navigation, search

In equities trading, "side-by-side trading" is defined by the simultaneous market making in a stock and its derivatives on a single exchange. Because of the opportunity for price manipulation, the Securities and Exchange Commission (SEC) has typically discouraged the practice.

In futures trading, "side-by-side trading" is the simultaneous electronic and open outcry trading of a futures contract on a single exchange. Side-by-side trading of futures contracts is not discouraged by the Commodity Futures Trading Commission (CFTC), although there are rules in place to avoid the appearance of front running customer orders[1].

References

  1. Crossing orders on e-cbot /Pre-execution communications prohibited. CBOT.

[Category:Trading]]