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How does trading in one venue affect the quoting strategies of market-makers in other venues? We develop a two-venue imperfect competition model in which market-makers face quadratic costs to absorb shocks. Non-constant marginal costs imply that absorbing a shock in one venue simultaneously...
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We propose a new model of trading in OTC markets. Dealers accumulate inventories by trading with end-investors and trade among each other to reduce their inventory holding costs. Core dealers use a more efficient trading technology than peripheral dealers, who are heterogeneously connected to...
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We propose a new model of trading in OTC markets. Dealers accumulate inventories by trading with end-investors and trade among each other to reduce their inventory holding costs. Core dealers use a more efficient trading technology than peripheral dealers, who are heterogeneously connected to...
Persistent link: https://www.econbiz.de/10012118757