The Global Market for OTC Derivatives: An Analysis of Dealer Holdings

41 Pages Posted: 28 Feb 2004

See all articles by Ekaterina E. Emm

Ekaterina E. Emm

Seattle University

Gerald D. Gay

Georgia State University - Department of Finance

Date Written: September 23, 2003

Abstract

We provide a descriptive examination of the trading activities of one of the most important intermediaries in global financial markets - the OTC derivatives dealer. These dealers play a central role in the provision of derivative products and in the intermediation of market risks faced by financial and non-financial firms alike. Utilizing a unique database, we analyze the derivatives holdings of 264 dealers spanning 34 countries over the period 1995-2001. We document the geographic composition of dealers on both country and regional levels as well as analyze trends in dealer holdings on an aggregate and individual product level. We further analyze the extent of global merger activity among dealers and resulting consolidation effects. Finally, we investigate at the individual dealer level the extent and evolution of their array of product offerings.

Keywords: Derivatives, dealers, hedging, OTC markets

JEL Classification: G1, G2

Suggested Citation

Emm, Ekaterina E. and Gay, Gerald D., The Global Market for OTC Derivatives: An Analysis of Dealer Holdings (September 23, 2003). Available at SSRN: https://ssrn.com/abstract=508682 or http://dx.doi.org/10.2139/ssrn.508682

Ekaterina E. Emm

Seattle University

900 Broadway
Seattle, WA 98122
United States

Gerald D. Gay (Contact Author)

Georgia State University - Department of Finance ( email )

Robinson College of Business
Atlanta, GA 30303-3083
United States
404-413-7321 (Phone)
404-413-7312 (Fax)

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