Derivative Market Competition - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Derivative Market Competition write by Mr.Jens Nystedt. This book was released on 2004-04-01. Derivative Market Competition available in PDF, EPUB and Kindle. Recent regulatory initiatives in the United States have again raised the issue of a 'level regulatory and supervisory playing field' and the degree of competition globally between over-the-counter (OTC) derivatives and organized derivative exchange (ODE) markets. This paper models some important aspects of how an ODE market interrelates with the OTC markets. It analyzes various ways in which an ODE market can respond to competition from the OTC markets and considers whether ODE markets would actually benefit from a more level playing field. Among other factors, such as different transaction costs, different abilities to mitigate credit risk play a significant role in determining the degree of competition between the two types of markets. This implies that a potentially important service ODE markets can provide OTC market participants is to extend clearing services to them. Such services would allow the OTC markets to focus more on providing less competitive contracts/innovations and instead customize its contracts to specific investors' risk preferences and needs.
Derivative Market Competition
Derivative Market Competition - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Derivative Market Competition write by Jens Nystedt. This book was released on 2004. Derivative Market Competition available in PDF, EPUB and Kindle.
Competition Without Fungibility
Competition Without Fungibility - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Competition Without Fungibility write by Söhnke M. Bartram. This book was released on 2019. Competition Without Fungibility available in PDF, EPUB and Kindle. In this paper, we compare option contracts from a traditional derivatives exchange to bank-issued options, also referred to as covered warrants. While bank-issued option markets and traditional derivatives exchanges exhibit significant structural differences such as the absence of a central counterparty for bank-issued options, they frequently exist side-by-side, and the empirical evidence shows that there is significant overlap in their product offerings although options are not fungible between the two markets. The empirical analysis indicates that bid-ask spreads in either market are lowered by 1-2% due to competition from the other market, providing evidence that the benefits of competing market structures are available in the absence of fungibility.
Derivatives Markets
Derivatives Markets - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Derivatives Markets write by Robert Lynch McDonald. This book was released on 2003. Derivatives Markets available in PDF, EPUB and Kindle. This text for derivatives courses are suitable for advanced undergraduates and both introductory and advanced derivatives courses at the MBA level. The material in derivatives courses is challenging for most students.
Discriminatory Pricing of Over-the-Counter Derivatives
Discriminatory Pricing of Over-the-Counter Derivatives - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Discriminatory Pricing of Over-the-Counter Derivatives write by Harald Hau. This book was released on 2019-05-07. Discriminatory Pricing of Over-the-Counter Derivatives available in PDF, EPUB and Kindle. New regulatory data reveal extensive price discrimination against non-financial clients in the FX derivatives market. The client at the 90th percentile pays an effective spread of 0.5%, while the bottom quarter incur transaction costs of less than 0.02%. Consistent with models of search frictions in over-the-counter markets, dealers charge higher spreads to less sophisticated clients. However, price discrimination is eliminated when clients trade through multi-dealer request-for-quote platforms. We also document that dealers extract rents from captive clients and market opacity, but only for contracts negotiated bilaterally with unsophisticated clients.
