Essec\Faculty\Model\Contribution {#2233 ▼
#_index: "academ_contributions"
#_id: "8338"
#_source: array:26 [
"id" => "8338"
"slug" => "8338-preferencing-internalization-and-inventory-position"
"yearMonth" => "2006-11"
"year" => "2006"
"title" => "Preferencing, Internalization and Inventory Position"
"description" => "LESCOURRET, L. et ROBERT, Y. (2006). <i>Preferencing, Internalization and Inventory Position</i>. ESSEC Business School. 
LESCOURRET, L. et ROBERT, Y. (2006). <i>Preferencing, Internalization and Inventory Position</i>. ES "
"authors" => array:2 [
0 => array:3 [
"name" => "LESCOURRET Laurence"
"bid" => "B00024824"
"slug" => "daures-laurence"
]
1 => array:1 [
"name" => "ROBERT Y."
]
]
"ouvrage" => ""
"keywords" => []
"updatedAt" => "2020-12-17 21:00:33"
"publicationUrl" => null
"publicationInfo" => array:3 [
"pages" => null
"volume" => null
"number" => null
]
"type" => array:2 [
"fr" => "Documents de travail"
"en" => "Working Papers"
]
"support_type" => array:2 [
"fr" => "Editeur"
"en" => "Publisher"
]
"countries" => array:2 [
"fr" => null
"en" => null
]
"abstract" => array:2 [
"fr" => "We present a model of market-making in which dealers differ by their current inventory positions and by their preferencing agreements. Under preferencing, dealers receive captive orders that they guarantee to execute at the best price. We show that preferencing raises the inventory holding costs of preferenced dealers. In turn, competitors post less aggressive quotes. Since price-competition is softened, expected spreads widen. The entry of unpreferenced dealers, or the ability to route preferenced orders to best-quoting dealers, as internalization does restore price competitiveness. We also show that a greater transparency may negatively affect expected spreads, depending on the scale of preferencing. We present a model of market-making in which dealers differ by their current inventory positions and "
"en" => "We present a model of market-making in which dealers differ by their current inventory positions and by their preferencing agreements. Under preferencing, dealers receive captive orders that they guarantee to execute at the best price. We show that preferencing raises the inventory holding costs of preferenced dealers. In turn, competitors post less aggressive quotes. Since price-competition is softened, expected spreads widen. The entry of unpreferenced dealers, or the ability to route preferenced orders to best-quoting dealers, as internalization does restore price competitiveness. We also show that a greater transparency may negatively affect expected spreads, depending on the scale of preferencing. We present a model of market-making in which dealers differ by their current inventory positions and "
]
"authors_fields" => array:2 [
"fr" => "Finance"
"en" => "Finance"
]
"indexedAt" => "2025-03-15T13:21:48.000Z"
"docTitle" => "Preferencing, Internalization and Inventory Position"
"docSurtitle" => "Documents de travail"
"authorNames" => "<a href="/cv/daures-laurence">LESCOURRET Laurence</a>, ROBERT Y."
"docDescription" => "<span class="document-property-authors">LESCOURRET Laurence, ROBERT Y.</span><br><span class="document-property-authors_fields">Finance</span> | <span class="document-property-year">2006</span> <span class="document-property-authors">LESCOURRET Laurence, ROBERT Y.</span><br><span class="docume "
"keywordList" => ""
"docPreview" => "<b>Preferencing, Internalization and Inventory Position</b><br><span>2006-11 | Documents de travail </span> <b>Preferencing, Internalization and Inventory Position</b><br><span>2006-11 | Documents de travail "
"docType" => "research"
"publicationLink" => "<a href="#" target="_blank">Preferencing, Internalization and Inventory Position</a>"
]
+lang: "fr"
+"_type": "_doc"
+"_score": 9.088097
+"parent": null
}
