Entering opposite position instead of settling position

Hello Ladies & Gents,

I am trying to figure out why investors/traders would rather enter an opposite position instead of settling the one they have with a broker-dealer/IB (apart form the pricing of course)?

Say the investor entered into a VarSwap/OTC option with an IB and instead of settling the trade at T with said IB they would enter into a trade in the opposite direction with anotehr IDB/IB.

Any one has some experience to share?

Thanks & regards Bondy

1 Comments
 

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