Printable Handouts

PDF

Navigable Slide Index

1. Introduction
2. Basic structure of the talk
3. The importance of secondary market trading
4. Direct and indirect trading costs
5. Microstructure of financial markets
6. Organization of trading
7. Central market
8. Brokered markets
9. Organizational questions
10. Trading at fixed times: call auctions
11. Supply, demand and sell volume in call auction
12. More on call auctions
13. Trading at any time
14. Basic types of orders on organized exchanges
15. Basic types of trading arrangements
16. Quote driven markets
17. Quote driven: dealer markets
18. Dealer markets: issues to keep in mind
19. Dealer markets: what else do we know?
20. General trends
21. What is different about bonds?
22. Benefits of a dealer market for a government
23. The organization of (UK) bond markets
24. Who are the gilt-edged market makers (GEMMs)?
25. Market organization
26. Trading arrangement (and the role of the LSE)
27. Dealer (GEMM) obligations and privileges
28. Implications of arrangements
29. Turnover (from DMO)
30. Why become a dealer/GEMM?
31. The business model of GEMMs
32. Summary of important aspects
33. Last words and questions for the future
34. Thank you for listening
35. Bibliography

Topics Covered

• The trading of government bonds in secondary markets
• The importance of market trading mechanisms
• Possible organizational forms of trading and their impact on market liquidity, execution costs, and price volatility
• Current market structures and stylized features of government securities trading

Links

Series:

• Government Debt Management

Categories:

• Finance, Accounting & Economics

Talk Citation

Publication History

• Published on May 12, 2009