What Is opt-out preferences?
In financial markets and exchanges, “opt-out preferences” allow traders to avoid specific trading activities or services provided by the exchange, often related to certain features or programs.
1. Dark Pools:
Some exchanges offer dark pools, which are private trading venues that allow participants to execute large orders with reduced market impact. Traders may have opt-out preferences to choose not to participate in dark pool trading if they prefer to trade on the public exchange.
2. Market-Making Programs:
Exchanges may have market-making programs that incentivize certain participants to provide liquidity in the market. Traders might choose to opt-out if they do not wish to participate in these programs or if they want to restrict their market-making activities.