Format:
1 Online-Ressource (circa 46 Seiten)
,
Illustrationen
ISBN:
9781498303774
Series Statement:
IMF working paper WP/19, 100
Content:
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
Additional Edition:
Erscheint auch als Druck-Ausgabe Hau, Harald Discriminatory Pricing of Over-the-Counter Derivatives Washington, D.C. : International Monetary Fund, 2019 ISBN 9781498303774
Language:
English
Keywords:
Graue Literatur
DOI:
10.5089/9781498303774.001
URL:
Volltext
(kostenfrei)
URL:
Volltext
(kostenfrei)
Author information:
Hau, Harald 1966-
