Crossing networks: Theory and evidence.

Networks; Theory;

Dynamic order Submission Strategies with Competition between a Dealer Market and a Crossing Network

We present a dynamic microstructure model where a dealer market (DM) and a crossing network (CN) interact. We consider sequentially arriving agents having different valuations for an asset. Agents maximize their profits by either trading at a DM or by submitting an order for (possibly) uncertain execution at a CN. We develop the analysis for three different informational settings: transparency, “complete” opaqueness of all order flow, and “partial” opaqueness (with observable DM trades). We find that a CN and a DM cater for different types of traders. Investors with a high eagerness to trade are more likely to prefer a DM. The introduction of a CN increases overall order flow by attracting traders who would not otherwise submit orders (“order creation”). It also diverts trades from the DM. The transparency and “partial” opaqueness settings generate systematic patterns in order flow. With transparency, the probability of observing a CN order at the same side of the market is smaller after such an order than if it was not. Buy (sell) orders at a CN are also less likely to attract subsequent sell (buy) orders at the DM.

Dynamic order submission strategies with competition between a dealer market and a crossing network

We present a dynamic microstructure model where a dealer market (DM) and a crossing network (CN) interact. Sequentially arriving traders with different valuations for an asset maximise their profits either by trading on a DM or by submitting an order for (possibly) uncertain execution via a CN. We develop the analysis for three different informational settings: transparency, "complete" opaqueness of all order flow, and "partial" opaqueness (with observable DM trades). A key result is that the interaction of trading systems generates systematic patterns in order flow for the transparency and partial opaqueness settings. The precise nature of these patterns depends on the degree of transparency at the CN. While unambiguous with a transparent CN, they may reverse direction if the CN is opaque. Moreover, in all three informational settings, we find that a CN and a DM cater for different types of traders. Investors with a high willingness to trade are more likely to prefer a DM. The introduction of a CN next to a DM also affects welfare as it increases total order flow by attracting traders who would otherwise not submit orders ("order creation"); in addition, it diverts trade from the DM ("trade diversion"). We find that the coexistence of a CN and DM produces more trader welfare than a DM in isolation. Also, more transparent markets lead to greater trader welfare but may reduce overall welfare.alternative trading systems, crossing network, dealer market, order flow, transparency, welfare

Dynamic order submission strategies with competition between a dealer market and a crossing network.

We present a dynamic microstructure model where a dealer market (DM) and a crossing network (CN) interact. We consider sequentially arriving agents having different valuations for an asset. Agents maximize their profits by either trading at a DM or by submitting an order for (possibly) uncertain execution at a CN. We develop the analysis for three different informational settings: transparency, “complete” opaqueness of all order flow, and “partial” opaqueness (with observable DM trades). We find that a CN and a DM cater for different types of traders. Investors with a high eagerness to trade are more likely to prefer a DM. The introduction of a CN increases overall order flow by attracting traders who would not otherwise submit orders (“order creation”). It also diverts trades from the DM. The transparency and “partial” opaqueness settings generate systematic patterns in order flow. With transparency, the probability of observing a CN order at the same side of the market is smaller after such an order than if it was not. Buy (sell) orders at a CN are also less likely to attract subsequent sell (buy) orders at the DM.Competition; Market; Order; Strategy;

Internalization, clearing and settlement, and liquidity.

We study the relation between liquidity in financial markets and post-trading fees (i.e. clearing and settlement fees). The clearing and settlement agent (CSD) faces different marginal costs for different types of transactions. Costs are lower for an internalized transaction, i.e. when buyer and seller originate from the same broker. We study two fee structures that the CSD applies to cover its costs. The first is a uniform fee on all trades internalized and non-internalized) such that the CSD breaks even on average. Traders then maximize trading rates and higher post-trading fees increase observed liquidity in the market. The second fee structure features a CSD breaking even by charging the internalized and non-internalized trades their respective marginal cost. In this case,traders face the following trade-off: address all possible counterparties at the expense of considerable post-trading fees, or enjoy lower post-trading fees by targeting own-broker counterparties only. This difference in post-trading fees drives traders' strategies and thus liquidity. Furthermore, across the two fee structures, we find that observed liquidity may differ from cum-fee liquidity (which encompasses the post-trading fees). With trade-specific fees, the cum-fee spread depends on the interacting counterparties. Next, regulators can improve welfare by imposing a particular fee structure. The optimal fee structure hinges on the magnitude of the post-trading costs. Noteworthy, a fee structure yielding higher social welfare may in fact reduce observed liquidity. Finally, we consider a number of extensions including market power for the CSD, anonymous trading and differences in broker size.transaction fees; internalization; clearing and settlement; liquidity; anonymity;

Mechanical and analytical screening of braided composites for transport fuselage applications

The mechanics of materials progress in support of the goal of understanding the application of braided composites in a transport aircraft fuselage are summarized. Composites consisting of both 2-D and 3-D braid patterns are investigated. Both consolidation of commingled graphite/PEEK and resin transfer molding of graphite-epoxy braided composite processes are studied. Mechanical tests were used to examine unnotched tension, open hole tension, compression, compression after impact, in-plane shear, out-of-plane tension, bearing, and crippling. Analytical methods are also developed and applied to predict the stiffness and strengths of test specimens. A preliminary study using the test data and analytical results is performed to assess the applicability of braided composites to a commercial aircraft fuselage

Can the stock market tell bank supervisors anything they don't already know?

This article provides evidence consistent with recent policy proposals calling for a greater role for market forces in promoting a safe and sound financial system. The authors' empirical results indicate a measure of expected default probability distilled from equity prices helps predict the financial condition of individual banking organizations, as reflected in their supervisory ratings. Moreover, the stock market data have predictive power over and above the information in the quarterly financial statements available to supervisors between inspections. These findings suggest financial markets can provide useful information to supplement supervisory assessments, particularly between inspections, and point to the value of additional research to further clarify the information content of market prices and quantities.Banks and banking ; Bank examination ; Bank supervision

Changing gender systems: a multidisciplinary approach

This article addresses various issues in the diachrony of gender marking, such as the origin and typology of gender systems, pathways of change and the question of directionality in relation to the Agreement Hierarchy, and the semantic basis of changes in gender systems in relation to the Individuation Hierarchy. It also offers an overview of recent multidisciplinary approaches to the evolution of gender systems including language acquisition research, contact linguistics, and theoretical syntax

Constraining the Variability and Binary Fraction of Galactic Center Young Stars

We present constraints on the variability and binarity of young stars in the central 10 arcseconds (~0.4 pc) of the Milky Way Galactic Center (GC) using Keck Adaptive Optics data over a 12 year baseline. Given our experiment's photometric uncertainties, at least 36% of our sample's known early-type stars are variable. We identified eclipsing binary systems by searching for periodic variability. In our sample of spectroscopically confirmed and likely early-type stars, we detected the two previously discovered GC eclipsing binary systems. We derived the likely binary fraction of main sequence, early-type stars at the GC via Monte Carlo simulations of eclipsing binary systems, and find that it is at least 32% with 90% confidence.Comment: Accepted for publication in Proceedings of IAU Symposium 322: The Multi-Messenger Astrophysics of the Galactic Centre, 2 pages, 1 figur

Test methods for textile composites

Various test methods commonly used for measuring properties of tape laminate composites were evaluated to determine their suitability for the testing of textile composites. Three different types of textile composites were utilized in this investigation: two-dimensional (2-D) triaxial braids, stitched uniweave fabric, and three-dimensional (3-D) interlock woven fabric. Four 2-D braid architectures, five stitched laminates, and six 3-D woven architectures were tested. All preforms used AS4 fibers and were resin-transfer-molded with Shell RSL-1895 epoxy resin. Ten categories of material properties were investigated: tension, open-hole tension, compression, open-hole compression, in-plane shear, filled-hole tension, bolt bearing, interlaminar tension, interlaminar shear, and interlaminar fracture toughness. Different test methods and specimen sizes were considered for each category of test. Strength and stiffness properties obtained with each of these methods are documented in this report for all the material systems mentioned above