Topic: OTC Exchange

17 Nov 2010

“Search and matching” theories by Dr Alex Pilato

The lack of competition increases funding and hedging costs for borrowers, which in turn has a direct negative effect on economic growth. The ‘product bundling’ approach used by banks to reduce competition also has the effect of reducing risk and return (i.e. price) transparency on lending and OTC derivatives, which in turn restricts the efficiency read more »