Bank ownership of multilateral trading facilities and implications for historical exchanges: An industrial economics approach - HAL Accéder directement au contenu
Article dans une revue Economic Modelling Année : 2017

Bank ownership of multilateral trading facilities and implications for historical exchanges: An industrial economics approach

Résumé

The aim of this paper is to address bank ownership in Multilateral Trading Facilities (MTFs) and its implications for historical exchanges. We propose an oligopoly model with network effects to account for an exchange industry that consists of two MTFs and an historical exchange. Based on the observation that banks are both owners and clients of MTFs, we examine banks' incentive to influence the pricing policy of MTFs. We show that when brokerage and trading activities are particularly important for banks' revenue relative to their profit as MTF operators, certain market outcomes may emerge whereby both MTFs include banks' interest as clients in their objective function. We also demonstrate that accounting for banks' interest in MTFs' objective function acts as a competitive device that reduces the price and the profitability of the historical exchange.
Loading...
Fichier non déposé

Dates et versions

halshs-02184649, version 1 (16-07-2019)

Identifiants

Citer

Delphine Lahet, Anne-Gaël Vaubourg. Bank ownership of multilateral trading facilities and implications for historical exchanges: An industrial economics approach. Economic Modelling, 2017, 65, pp.9-17. ⟨10.1016/j.econmod.2017.04.014⟩. ⟨halshs-02184649⟩
24 Consultations
0 Téléchargements
Dernière date de mise à jour le 05/05/2024
comment ces indicateurs sont-ils produits

Altmetric

Partager

Gmail Facebook Twitter LinkedIn Plus