Exchanges increasingly generate revenues from selling transaction data, in addition to their traditional business of matching traders. Given exchanges' market power over their data, this raises questions about the quality and pricing of these data, and exchanges' contribution to market transparency. We study the optimal design of an exchange that sells both access to its trading platform and transaction data generated by traders' activity. We...

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...