haku: @journal_id 789 / yhteensä: 95
viite: 72 / 95
| Tekijä: | Lyons, R. |
| Otsikko: | Optimal transparency in a dealer market with an application to foreign exchange |
| Lehti: | Journal of Financial Intermediation
1996 : JUL, VOL. 5:3, p. 225-254 |
| Asiasana: | FINANCE FINANCIAL INTERMEDIARIES FOREIGN EXCHANGE |
| Kieli: | eng |
| Tiivistelmä: | This paper addresses a fundamental trade-off in the design of multiple-dealer markets. Namely, though greater transparency can accelerate revelation of information in price, it can also impede dealer risk management. If dealers could choose the transparency regime ex ante, which regime would they choose? The author shows that dealers prefer incomplete transparency. Slower price adjustment provides time for nondealers to trade, thereby sharing risk otherwise borne by dealers. At some point, however, further reduction in transparency impedes risk sharing. |
SCIMA