We investigate the source of information advantage in inter-dealer FX trading using data on trades and counterparty identities. In liquid dollar exchange rates, information is concentrated among dealers that trade most frequently and specialize their activity in a particular rate. In...

We develop a model of optimal dissemination of private information by a short- sighted raider within a market for a risky asset. Because the raider is risk-averse and atomistic, her trades cannot directly affect prices. In addition, because she is short- sighted she needs to liquidate her...