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Market structure. The specialist as dealer and broker

Publication ,  Journal Article
Conroy, RM; Winkler, RL
Published in: Journal of Banking and Finance
January 1, 1986

Models of a specialist's spread-setting behavior have focused on the specialist's role as a dealer and have generally not considered competition from limit orders. In this paper, a model of spread-setting behavior is described and used to study the competitive effect of public limit orders and the nature of the relationship between the specialist's dual functions as dealer and broker. The analysis indicates that public limit orders are an effective form of competition and that the dual functions of the specialist tend not to be complementary. An expression for the expected market spread is also derived and the impact on the market spread of the specialist's spread is discussed. These results have implications for the design of an improved market system. © 1986.

Duke Scholars

Published In

Journal of Banking and Finance

DOI

ISSN

0378-4266

Publication Date

January 1, 1986

Volume

10

Issue

1

Start / End Page

21 / 36

Related Subject Headings

  • Finance
  • 4901 Applied mathematics
  • 3502 Banking, finance and investment
  • 1502 Banking, Finance and Investment
  • 1401 Economic Theory
  • 0102 Applied Mathematics
 

Citation

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Conroy, R. M., & Winkler, R. L. (1986). Market structure. The specialist as dealer and broker. Journal of Banking and Finance, 10(1), 21–36. https://doi.org/10.1016/0378-4266(86)90018-X
Conroy, R. M., and R. L. Winkler. “Market structure. The specialist as dealer and broker.” Journal of Banking and Finance 10, no. 1 (January 1, 1986): 21–36. https://doi.org/10.1016/0378-4266(86)90018-X.
Conroy RM, Winkler RL. Market structure. The specialist as dealer and broker. Journal of Banking and Finance. 1986 Jan 1;10(1):21–36.
Conroy, R. M., and R. L. Winkler. “Market structure. The specialist as dealer and broker.” Journal of Banking and Finance, vol. 10, no. 1, Jan. 1986, pp. 21–36. Scopus, doi:10.1016/0378-4266(86)90018-X.
Conroy RM, Winkler RL. Market structure. The specialist as dealer and broker. Journal of Banking and Finance. 1986 Jan 1;10(1):21–36.
Journal cover image

Published In

Journal of Banking and Finance

DOI

ISSN

0378-4266

Publication Date

January 1, 1986

Volume

10

Issue

1

Start / End Page

21 / 36

Related Subject Headings

  • Finance
  • 4901 Applied mathematics
  • 3502 Banking, finance and investment
  • 1502 Banking, Finance and Investment
  • 1401 Economic Theory
  • 0102 Applied Mathematics