A Tale of Two Platforms : Dealer Intermediation in the European Sovereign Bond Market

  title={A Tale of Two Platforms : Dealer Intermediation in the European Sovereign Bond Market},
  author={Peter Dunne and Harald Hau and Michael Moore},
European sovereign bond trading occurs in a highly liquid inter-dealer market and a parallel dealer-customer market in which buy-side financial institutions request quotes from primary dealers. Synchronized price data from both market segments allow us to compare market quality. We find that customer transactions (i) are on average priced very favorably relative to the best inter-dealer quotes, (ii) feature a relatively high price dispersion at any given moment, and (iii) show less average… CONTINUE READING


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