John C.F. Kuong

John C.F. Kuong

Institution

CUHK Business School

PhD Year

2014

Email

johncfkuong@gmail.com

FTG Membership

Member

Website

http://www.johncfkuong.com

Featured Work

Mar 5, 2026

John C.F. Kuong, Vincent Maurin

Dealers as Record Keepers

Trading relationships in over-the-counter (OTC) markets are persistent and often exclusive, despite technological advances that have expanded clients' access to dealers. We rationalize this pattern in a model where trading relationships allow dealers to learn their clients' trading motives from their trading records. Relationship dealers set record-contingent quotes, generating price discrimination that mitigates adverse selection for liquidity-driven clients. Moreover, we show that clients prefer exclusive...