Peter Kratz

  1. Portfolio liquidation in dark pools in continuous time.

    Authors: Torsten Schöneborn, Peter Kratz
    Subjects: Trading and Market Microstructure
    Abstract

    We consider an illiquid financial market where a risk-averse investor has to
    liquidate a large portfolio within a finite time horizon [0,T] and can trade
    continuously at a traditional exchange (the "primary venue") and in a dark
    pool. At the primary venue, trading yields a linear price impact. In the dark
    pool, no price impact costs arise but order execution is uncertain, modeled by
    a multi-dimensional Poisson process.

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