arXiv Open Access 2024

Optimal Execution Strategies Incorporating Internal Liquidity Through Market Making

Yusuke Morimoto
Lihat Sumber

Abstrak

This paper introduces a new algorithmic execution model that integrates interbank limit and market orders with internal liquidity generated through market making. Based on the Cartea et al.\cite{cartea2015algorithmic} framework, we incorporate market impact in interbank orders while excluding it for internal market-making transactions. Our model aims to optimize the balance between interbank and internal liquidity, reducing market impact and improving execution efficiency.

Topik & Kata Kunci

Penulis (1)

Y

Yusuke Morimoto

Format Sitasi

Morimoto, Y. (2024). Optimal Execution Strategies Incorporating Internal Liquidity Through Market Making. https://arxiv.org/abs/2501.07581

Akses Cepat

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Informasi Jurnal
Tahun Terbit
2024
Bahasa
en
Sumber Database
arXiv
Akses
Open Access ✓