Self-Match Prevention prevents what?

Self-Match Prevention prevents what?

• A. It prevents cross-trading across markets
• B. For on-exchange, on-order-book trading, prevents execution of orders and quotes of the same participant
• C. It prevents all orders from executing during the day
• D. It applies only to off-exchange trades

Answer: (B)

Self-Match Prevention is about stopping a trader from trading against their own orders on the exchange’s order book. In on-exchange, on-order-book trading, the system checks for situations where the same participant would be matched with their own bid and ask or with their own quotes and blocks that match. This prevents self-trading, which could otherwise create artificial price moves or misleading liquidity. It doesn’t address cross-market trading, isn’t about halting all activity for the day, and doesn’t apply to off-exchange trades. The protection is specifically for preventing a participant’s orders or quotes from executing against each other on the on-exchange order book.

Self-Match Prevention is about stopping a trader from trading against their own orders on the exchange’s order book. In on-exchange, on-order-book trading, the system checks for situations where the same participant would be matched with their own bid and ask or with their own quotes and blocks that match. This prevents self-trading, which could otherwise create artificial price moves or misleading liquidity. It doesn’t address cross-market trading, isn’t about halting all activity for the day, and doesn’t apply to off-exchange trades. The protection is specifically for preventing a participant’s orders or quotes from executing against each other on the on-exchange order book.