caa a22 4500 605451079 CHVBK 20210128100149.0 cr unu---uuuuu 210128e20150401xx s 000 0 eng 10.1007/s11147-014-9101-4 doi (NATIONALLICENCE)springer-10.1007/s11147-014-9101-4 Boyd Naomi Department of Finance, West Virginia University, 26505, Morgantown, WV, USA aut Market making and risk management in options markets [Elektronische Daten] [Naomi Boyd] This article examines the personal trading strategies of member proprietary traders in the natural gas futures options market. Trading activity is found to mirror previous findings in futures markets, specifically high frequency trading, with low risk exposure. The portfolio of risk holdings by member proprietary traders are also examined to identify whether they are instantaneously hedged using the underlying futures market, as well as to investigate how they manage their inventory holding, rebalancing, and volatility risk exposures. Findings of longer-term risk management practices by option markets indicate that instantaneous hedging does not take place in this market. Exposure to price and volatility risks is actively managed, while rebalancing risk exposure has a significant impact on profit for this trading group. Springer Science+Business Media New York, 2014 Options nationallicence Market making nationallicence Risk nationallicence Hedging nationallicence Review of Derivatives Research Springer US; http://www.springer-ny.com 18/1(2015-04-01), 1-27 1380-6645 18:1<1 2015 18 11147 https://doi.org/10.1007/s11147-014-9101-4 text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s11147-014-9101-4 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Boyd Naomi Department of Finance, West Virginia University, 26505, Morgantown, WV, USA aut NATIONALLICENCE 773 0- Review of Derivatives Research Springer US; http://www.springer-ny.com 18/1(2015-04-01), 1-27 1380-6645 18:1<1 2015 18 11147