Article: If you can't beat 'em, join 'em. (futures and options exchanges; over-the counter markets)(includes related articles) (Trade Trends) (Cover Story)

Once futures and options exchanges fought the OTC market tooth-and-nail in Washington. Now, they're aiming to grab a piece of the OTC action with new products and services, and -- they hope -- similar regulatory exemptions.

Paper scraps litter steps of the empty pit, just a few yards from the chaotic shouting for SPX. For much of the day, the Chicago Board Options Exchange's (CBOE) newest pit -- FLEX options -- is deserted, waiting until a request for quotes sends market makers hurrying to call the number crunchers upstairs for valuations on a customized deal.

Such on-again, off-again action is often the sign of a new product flop, not the beginning of a new ...

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