John C.F. Kuong
Institution
CUHK Business School
PhD Year
2014
johncfkuong@gmail.com
FTG Membership
Member
Website
http://www.johncfkuong.com
Featured Work
Mar 5, 2026
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...