Federal Reserve Bank of Richmond: How Private Information Distorts Over-the-Counter Market Outcomes
July 23, 2025
July 23, 2025
RICHMOND, Virginia, July 23 (TNSLrpt) -- The Federal Reserve Bank of Richmond issued an Economic Brief (No. 25-26) titled 'How Private Information Distorts OTC Market Outcomes,' authored by Lindsay Li and Nicholas Trachter and released in July 2025. The report analyzes how information frictions in over-the-counter (OTC) markets--where buyers and sellers negotiate bilaterally with limited knowledge--reduce asset creation, trading volume, and overall economic welfare, focusing on data fr . . .