Hi guys, just saw this a few minutes ago and am not quite sure if it still works this way. <i> Portfolio insurance may be an example of a stragety that attempts to precommit to withdraw funds in the case of large moves, which will thus worsen the liquididy (pressure) effects... Leland and Rubinstein (1988) describe some possible front-running in October of 1987: "with the sudden fall in the market during the last half hour of trading on October 16, many insurers found themselves with an overhang of unfilled sell orders going into Monday. In addition, several smart institutional traders knew about this overhang and tried to exit the market early Monday before the insurers could complete their trades."</i> My question is, does anyone know if such porftolio insurance effects are still there given a large move in price? Does anyone have any industry knowledge of whether the practice is still in use? TIA.