Competition for Order Flow and the Theory of Global Games : The impact of alternative trading systems on securities markets

Jutta Dönges

ISBN 10: 3824474263 / ISBN 13: 9783824474264

Published by Deutscher Universitätsverlag, Deutscher Universitätsverlag, 2001

About this Item

nach der Bestellung gedruckt Neuware - Printed after ordering - The proliferation of alternative trading systems has increased competition for order flow in financial markets significantly and renewed the debate on fragmentation versus consolidation. Market microstructure models that analyze liquidity-based intermarket competition typically exhibit multiple equilibria, making it difficult to determine whether fragmentation or consolidation of order flow will occur.Jutta A. Dönges applies the recently developed theory of global games thatreduces multiplicity of equilibria in coordination games to a model of intermarket competition and demonstrates the existence of a unique equilibrium under fairly general conditions. The author investigates whether and under which circumstances alternative trading systems, particularly crossing networks, can co-exist with established markets or even replace them and explores how the introduction of a crossing network affects bothmonopolistic and competitive dealer markets and the market participants'behavior.

Seller Inventory # 9783824474264

Bibliographic Details

• Title: Competition for Order Flow and the Theory of Global Games : The impact of alternative trading systems on securities markets
• Publisher: Deutscher Universitätsverlag, Deutscher Universitätsverlag
• Publication Date: 2001
• Language: German
• ISBN 10: 3824474263
• ISBN 13: 9783824474264
• Binding: Taschenbuch
• Condition: Neu
• Dimensions: 210W x 148H x 17D millimeters 210 millimeters width by 148 millimeters height by 17 millimeters depth
• Weight: 401 grams

About this title

Synopsis

The proliferation of alternative trading systems has increased competition for order flow in financial markets significantly and renewed the debate on fragmentation versus consolidation. Market microstructure models that analyze liquidity-based intermarket competition typically exhibit multiple equilibria, making it difficult to determine whether fragmentation or consolidation of order flow will occur.

Jutta A. Dönges applies the recently developed theory of global games that
reduces multiplicity of equilibria in coordination games to a model of intermarket competition and demonstrates the existence of a unique equilibrium under fairly general conditions. The author investigates whether and under which circumstances alternative trading systems, particularly crossing networks, can co-exist with established markets or even replace them and explores how the introduction of a crossing network affects both
monopolistic and competitive dealer markets and the market participants'
behavior.

About the Author

Dr. Jutta A. Dönges promovierte am Fachbereich Wirtschaftswissenschaften der Universität Frankfurt am Main. Sie ist seit mehreren Jahren in der Investment Banking Division einer amerikanischen Investment Bank tätig.