A carteira de ações da corretora: uma análise econômica

Abstract

Dual trading is the practice in which floor traders at exchanges act as brokers in bringing customers orders to the market and trade for their own account. Dual trading is one of the most controversial issues currently facing the stock markets. Critics of dual trading argue that it causes a conflict of interest between dual-trading brokers and their customers. Advocates of dual trading argue that it increases market efficiency and liquidity, leading to less volatile price and lower sensibility of prices with the volume of transactions. In this paper, we study the effects of dual trading in a market with assimetrically informed traders.