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Dealers' incentives to reveal their names

Karam, A.

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Abstract

This research investigates dealers' motivation to disclose their names when quoting on the NASDAQ over the years. NASDAQ enables dealers to quote limit orders either anonymously or with a feature that reveals their names. Results are consistent with dealers advertising by revealing their identities so as to develop and maintain their reputation for reliable pricing. Dealers strategically choose to reveal their identities when order flow is profitable. Post‐name disclosure analysis further suggests that named quotations are likely to be driven by informational considerations. This research contributes to our understanding of the use of non‐anonymity in electronic trading.

Citation

Karam, A. (2022). Dealers' incentives to reveal their names. Financial Review, 57(1), 27-44. https://doi.org/10.1111/fire.12229

Journal Article Type Article
Acceptance Date Feb 7, 2020
Online Publication Date Apr 13, 2020
Publication Date Feb 1, 2022
Deposit Date Oct 24, 2019
Publicly Available Date Mar 28, 2024
Journal Financial Review
Print ISSN 0732-8516
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 57
Issue 1
Pages 27-44
DOI https://doi.org/10.1111/fire.12229
Public URL https://durham-repository.worktribe.com/output/1286851

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Copyright Statement
"This is the peer reviewed version of the following article: Karam, A. (2022). Dealers' incentives to reveal their names. The Financial Review 57(1): 27-44., which has been published in final form at https://doi.org/10.1111/fire.12229. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited."





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