Essec\Faculty\Model\Contribution {#2233
  #_index: "academ_contributions"
  #_id: "15912"
  #_source: array:26 [
    "id" => "15912"
    "slug" => "15912-a-theory-of-participation-in-otc-and-centralized-markets"
    "yearMonth" => "2022-11"
    "year" => "2022"
    "title" => "A Theory of Participation in OTC and Centralized Markets"
    "description" => "DUGAST, J., USLU, S. et WEILL, P.O. (2022). A Theory of Participation in OTC and Centralized Markets. <i>Review of Economic Studies</i>, 89(6), pp. 3223-3266."
    "authors" => array:3 [
      0 => array:3 [
        "name" => "DUGAST Jerome"
        "bid" => "B00827950"
        "slug" => "dugast-jerome"
      ]
      1 => array:1 [
        "name" => "USLU Semih"
      ]
      2 => array:1 [
        "name" => "WEILL Pierre-Olivier"
      ]
    ]
    "ouvrage" => ""
    "keywords" => array:2 [
      0 => "Over-the-counter (OTC) markets"
      1 => "Centralized markets"
    ]
    "updatedAt" => "2025-09-18 10:37:57"
    "publicationUrl" => "https://doi.org/10.1093/restud/rdac010"
    "publicationInfo" => array:3 [
      "pages" => "3223-3266"
      "volume" => "89"
      "number" => "6"
    ]
    "type" => array:2 [
      "fr" => "Articles"
      "en" => "Journal articles"
    ]
    "support_type" => array:2 [
      "fr" => "Revue scientifique"
      "en" => "Scientific journal"
    ]
    "countries" => array:2 [
      "fr" => null
      "en" => null
    ]
    "abstract" => array:2 [
      "fr" => "Should regulators encourage the migration of trade from over-the-counter (OTC) to centralized markets? To address this question, we study a model in which banks make costly decisions to participate in an OTC market, a centralized market, or both markets at the same time. Banks differ in their ability to take large positions, what we call their trading capacity. In equilibrium, intermediate-capacity banks find it optimal to participate in the centralized market. In contrast, low- and high-capacity banks find it optimal to participate in the OTC market, due to an endogenous complementarity. Namely, low-capacity banks receive worse terms of trade than in the centralized market but better risk sharing, thanks to the intermediation services offered by high-capacity banks. High-capacity banks receive worse risk sharing than in the centralized market, but profit from the provision of intermediation services to low-capacity banks. While the social optimum has qualitatively similar participation patterns, it prescribes that more customers migrate to the centralized market, and that more dealers enter the OTC market."
      "en" => "Should regulators encourage the migration of trade from over-the-counter (OTC) to centralized markets? To address this question, we study a model in which banks make costly decisions to participate in an OTC market, a centralized market, or both markets at the same time. Banks differ in their ability to take large positions, what we call their trading capacity. In equilibrium, intermediate-capacity banks find it optimal to participate in the centralized market. In contrast, low- and high-capacity banks find it optimal to participate in the OTC market, due to an endogenous complementarity. Namely, low-capacity banks receive worse terms of trade than in the centralized market but better risk sharing, thanks to the intermediation services offered by high-capacity banks. High-capacity banks receive worse risk sharing than in the centralized market, but profit from the provision of intermediation services to low-capacity banks. While the social optimum has qualitatively similar participation patterns, it prescribes that more customers migrate to the centralized market, and that more dealers enter the OTC market."
    ]
    "authors_fields" => array:2 [
      "fr" => "Finance"
      "en" => "Finance"
    ]
    "indexedAt" => "2025-12-06T05:21:43.000Z"
    "docTitle" => "A Theory of Participation in OTC and Centralized Markets"
    "docSurtitle" => "Articles"
    "authorNames" => "<a href="/cv/dugast-jerome">DUGAST Jerome</a>, USLU Semih, WEILL Pierre-Olivier"
    "docDescription" => "<span class="document-property-authors">DUGAST Jerome, USLU Semih, WEILL Pierre-Olivier</span><br><span class="document-property-authors_fields">Finance</span> | <span class="document-property-year">2022</span>"
    "keywordList" => "<a href="#">Over-the-counter (OTC) markets</a>, <a href="#">Centralized markets</a>"
    "docPreview" => "<b>A Theory of Participation in OTC and Centralized Markets</b><br><span>2022-11 | Articles </span>"
    "docType" => "research"
    "publicationLink" => "<a href="https://doi.org/10.1093/restud/rdac010" target="_blank">A Theory of Participation in OTC and Centralized Markets</a>"
  ]
  +lang: "fr"
  +"_score": 8.714403
  +"_ignored": array:2 [
    0 => "abstract.en.keyword"
    1 => "abstract.fr.keyword"
  ]
  +"parent": null
}