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New regulatory data reveal extensive price discrimination against non-financialclients in the FX derivatives market. The client at the 90th percentile pays aneffective spread of 0.5%, while the bottom quarter incur transaction costs of lessthan 0.02%. Consistent with models of search frictions...
Persistent link: https://www.econbiz.de/10012868480
Persistent link: https://www.econbiz.de/10012703699
New regulatory data reveal extensive discriminatory pricing in the foreign exchange derivatives market, in which dealer-banks and their non-financial clients trade over-the-counter. After controlling for contract characteristics, dealer fixed effects, and market conditions, we find that the...
Persistent link: https://www.econbiz.de/10013248971
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...
Persistent link: https://www.econbiz.de/10012021832
For the first time, new regulatory data allow precise measurement of price discrimination against non-financial clients in the FX derivatives market. Consistent with the theoretical literature, transaction costs vary systematically with measures of client sophistication. The median client pays...
Persistent link: https://www.econbiz.de/10011875673
Persistent link: https://www.econbiz.de/10011821204
New regulatory data reveal extensive discriminatory pricing in the foreign exchange derivatives market, in which dealer-banks and their non-financial clients trade over-the-counter. After controlling for contract characteristics, dealer fixed effects, and market conditions, we find that the...
Persistent link: https://www.econbiz.de/10011978406