Competition and manipulation in derivative contract markets

Innovation in Decentralized Markets: Technology versus Synthetic Products

“…Updates to these rules aimed to improve traders' access to information (Final Rule: Regulation NMS, 2020). However, many transactions involving joint trading of multiple securities (e.g., equities and related derivatives) are exempt from such price linkages.4 See, e.g.,Bollen and Whaley (2004),Garleanu, Pedersen, and Poteshman (2009),Bali, Beckmeyer, Moerke, and Weigert (2022),Zhang (2022) and references there.5 Analysis of multi-asset markets with multi-unit demands in this framework-competitive and imperfectly competitive-has focused on markets in which traders' demands for each asset are contingent on the prices of all assets (e.g.,Wilson (1979),Klemperer and Meyer (1989),Kyle (1989),Vives (2011)). Such schedules, however, are not yet common in practice.…”

“…e.g.,Allen and Wittwer (2021),Du and Zhu (2017a,b) Baisa and Burkett (2018),Antill and Duffie (2021),Kyle, Obizhaeva, and Wang (2017),Kyle and Lee (2018),Duffie (2018),Zhu (2018a,b), Yoon (2019, 2021a,b),Chen and Zhang (2020),Zhang (2022),Babus and Hachem (2021),Cespa and Vives (2021),Chen and Duffie (2021),Somogyi (2021),Wittwer (2021).…”