Briefing
Information and Core-Periphery Structure in Over-the-Counter Markets
Trachter, Nicholas (2022-06)
An over-the-counter (OTC) market is a market where investors trade any kind of asset without a central exchange. OTC markets can be quite large. For example, the OTC market for credit default swaps (CDS) exhibit a quarterly trade volume of over $2 trillion. A prevalent feature of most OTC markets — and in particular for the CDS OTC market — is that the trading network of market participants exhibit a core-periphery structure.
Richmond Fed Economic Brief , Volume 22 , Issue 23