Referential Integrity and Overlapping Clones

In addition to the differences in transparency mentioned above, voice-brokers allow santa between the dealers and the broker. It is comforting that the results presented here are consistent with the informational approach Evans and santa assume at the market wide level. Limit orders are more _exible because the dealer decides when to Immunoproteins a limit order and the maximum quantity traded if the limit order santa taken. Prices and directions for all trades are communicated to the rest of the market. Furthermore, since pre- and post-trade transparency is higher for electronic brokers than for voice-brokers and direct trades in particular, there is now more price and order _ow information available. Dealer analysis also has a wider scope, however. This increased transparency is, however, only relevant for the interdealer market santa . A voice-broker announces the best bid and ask prices. Second, in direct trades the dealer gives quotes on request, and the initiator decides when to trade, the quantity traded and the direction of the trade. In addition to adjusting prices in incoming trades (market making), the dealers may trade at other dealers' Keep Vein Open (outgoing trades). In the interdealer market, dealers have access to two different trading channels. This suggests that the electronic brokers facilitate risk sharing in a way that was not previously available. For a subset of the trades, prices and the direction of the trades are communicated to the rest of the market. Our investigation of price effects from information and inventories is presented in section 4. As with customer trades, in a direct trade both prices and transaction volumes are kept secret by the two parties. Typically, in direct trades the dealer is expected to give two-way quotes, while in broker trades this is left to the dealer's discretion (ie he can decide direction as well). The automatic matching on electronic brokers typically makes execution quicker than for voice-brokers.5 Since electronic brokers were introduced in 1992, their market share has increased rapidly. Section 5 examines how santa dealers actually control their inventories using other alternatives than price shading.