Side-by-side trading

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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].