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Quantitative Finance · Glossary

What is Quote protection?

Definition 24.2 Markets I: The Ecosystem and Exchange-Traded Markets · Chapter 24 — Options Market Structure

Quote protection denotes the exchange-provided mechanisms that limit a market maker’s exposure across its many quotes: a risk monitor that cancels all of a firm’s quotes in a class when its fills within a short window exceed a set number, bulk cancel messages, and kill switches.

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