Information or Market Power: What is Governing Dealers’ Pricing Behaviour in FX Markets?
Regular price
€59.99
14 days return policy
Shipping & Delivery
A01=Markus Alexander Schmidt
Alexander
Author_Markus Alexander Schmidt
Category=JP
Category=KCA
Category=KCBM
Category=KCK
Category=KCP
Category=KFFK
Category=KJSM
eq_bestseller
eq_business-finance-law
eq_isMigrated=1
eq_isMigrated=2
eq_nobargain
eq_non-fiction
eq_society-politics
Product details
- ISBN 9783631579282
- Weight: 350g
- Dimensions: 148 x 210mm
- Publication Date: 05 Aug 2008
- Publisher: Peter Lang AG
- Publication City/Country: CH
- Product Form: Paperback
Secure
checkout
Fast Shipping
Easy returns
The microstructure approach provides valuable insights into high-frequent exchange rate dynamics. Recent studies, including this book, evidence the prominence of information asymmetries for asset pricing as well as order flow’s important role during information aggregation processes via trading. However, results indicate that dealers quote prices in contrast to predictions of standard theory of asset pricing under asymmetric information. By analysing a unique data set of EUR/USD transactions at a German bank, this work investigates whether this pricing behaviour is due to dealers’ strategic dealing considerations or traders’ relative market power. The study concludes that it is market power rather than strategic dealing that determines dealers’ pricing strategy.
The Author: Markus A. Schmidt studied economics at the University of Giessen, (Diplom, MSc-equivalent 2005), and the University of Exeter (Great Britain). He received his doctorate from the University of Giessen in 2008. Concomitantly to his doctoral thesis, he worked as credit strategist with a financial institution. He is now working with Deutsche Bundesbank, Economics Department.
