How are options market makers going to hedge?

[runningman]

Without the ability to short stocks, how do market makers hedge their positions?

 

[scriabinop23]

Quote from runningman:

Without the ability to short stocks, how do market makers hedge their positions?

Short DITM calls?

 

[stock777]

Quote from scriabinop23:

Short DITM calls?

dude, TO WHO???????????


Looks like they should get a perm exemption, they had one for today anyway.

 

[Zlatko]

Market makers for derivatives are exempt from the short selling rules

http://www.sec.gov/news/press/2008/2008-213.htm