This 70-page study has been authored by the Australian Securites and Investments Commission. Using privileged data, it highlights many of the unobservable practices of high frequency traders. It…
This paper analyzes recent trends in the size and composition of over-the-counter (OTC) derivatives markets, using the latest data from the Bank for International Settlements (BIS) and ISDA.
Despite the availability of low-cost exchanges, over-the-counter (OTC) trading is pervasive for most assets. We explain the prevalence of OTC trading using a model of adverse selection, in which…
