Thursday, March 09, 2006

Internal offerings

Interesting idea from Bloomberg's trading system. It is possible to set up an internal market for initial offerings.

For example, lets say you have bought a lot of a particular bond issue. It is on the books and you want to sell it off. Create an internal market, and allow the sales people to buy and sell from this pool.

Another reason why exchanges in a trading sytem are not just external exchanges.

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