abhishreshthaa
Abhijeet S
WHOLESALE MARKET (primary price maker)
The wholesale market is also referred to as interbank market the average transaction size in this market is very small.
Participants: Commercial banks, Corporations and Central bank
Among these participants, primary price maker or professional dealer make a two way market to each other & their clients, i.e. on request they will quote a two-way price & be prepared to take either the buy or sell side .
This group mainly include commercial bank but some large investment dealer & a few large corporation have also assumed the role of primary dealers. Primary price makers perform an important role in taking positions off the hands of another dealer or corporate customer & then offsetting these by doing an opposite deal with another entity which has a matching requirement.
The wholesale market is also referred to as interbank market the average transaction size in this market is very small.
Participants: Commercial banks, Corporations and Central bank
Among these participants, primary price maker or professional dealer make a two way market to each other & their clients, i.e. on request they will quote a two-way price & be prepared to take either the buy or sell side .
This group mainly include commercial bank but some large investment dealer & a few large corporation have also assumed the role of primary dealers. Primary price makers perform an important role in taking positions off the hands of another dealer or corporate customer & then offsetting these by doing an opposite deal with another entity which has a matching requirement.