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Otc Quote Size.Kemerey.Thesis.Pdf, Kemerey Thompson Apr 2019

Otc Quote Size.Kemerey.Thesis.Pdf, Kemerey Thompson

Kemerey Thompson

I examine the effects of a change in the minimum quotation size on liquidity and volatility in the modern over-the-counter (OTC) markets. On November 12, 2012, the Financial Industry Regulatory Agency (FINRA) introduced a pilot program to adjust the minimum quote sizes for securities transactions in the OTC markets. I find that an increase in the minimum quote size decreases OTC market quality as spreads widen and volatility increases. In contrast, I find that a decrease in the minimum quote size improves OTC market quality, but the results are sensitive to the price of the security. These results offer important …

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Derivative Markets And Economic Growth: Is There A Relationship?, A. Baluch, Mohamed Ariff Aug 2009

Derivative Markets And Economic Growth: Is There A Relationship?, A. Baluch, Mohamed Ariff

Mohamed Ariff

The spread of capital markets during the half century to-date is a notable global phenomenon in economic development. Derivative markets spread globally in the last quarter century spreading form just two to some 50 in 2007. But the role of derivative markets to economic development has yet been studied. This paper reports new findings on the relationship between derivative market development and (a) economic growth and (b) spot market factors. The results provide very scant support to a positive functional contribution hypothesis by some scholars about derivative markets. However, a negative relationship between the liquidity level of derivative markets and …

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