Ederington, Louis; Guan, Wei; Yadav, Pradeep K. - 2015
market-making spreads. In their role as agents, dealers face liquidity-search and customer interface costs, while in their … role as market makers they face inventory and asymmetric information costs. Consistent with this, we find that while market-making … driven variables. While market-making spreads are inversely related to trade size, agent-related spreads increase with trade …