Price discovery: Difference between revisions

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The process by which market participants obtain information about the prices at which counterparties are willing to buy  or sell specific financial instruments.
Price discovery is the process by which market participants obtain information about the prices at which counterparties are willing to buy  or sell specific financial instruments or other assets.


For major transactions it is often facilitated by a professional adviser or intermediary.


Source:
Bank of England, ''Fair and Effective Markets Review'', June 2015.


:<span style="color:#4B0082">'''''Centralising FX price discovery'''''</span>
:"Let's say a corporate has gone through all the necessary steps... and now has a multibank panel at its disposal for FX execution.
:Each counterparty might have different trade processes and systems to navigate, and so the corporate might have to make an additional investment... in an aggregator platform to centralise price discovery..."
:''Multibank FX platforms and fintech FX solutions - Eric Huttman, CEO of MillTechFX - The Treasurer online, October 2021.''




== See also ==
== See also ==
*[[Aggregator]]
*[[Broker-dealer]]
*[[Capital allocation]]
*[[Counterparty]]
*[[Circuit breaker]]
*[[Circuit breaker]]
*[[Electronic communication network]]
*[[Electronic communication network]]
*[[Execution]]
*[[Foreign exchange]]  (FX)
*[[Initial Price Thoughts]]  (IPT)
*[[Investment bank]]
*[[Price formation]]
*[[Price formation]]
*[[Price talk]]
*[[Price transparency]]
*[[Price transparency]]
*[[Price whispers]]
*[[Tightening]]
*[[Transparency]]
*[[Widening]]
[[Category:Financial_products_and_markets]]
[[Category:The_business_context]]

Latest revision as of 12:01, 28 March 2024

Price discovery is the process by which market participants obtain information about the prices at which counterparties are willing to buy or sell specific financial instruments or other assets.

For major transactions it is often facilitated by a professional adviser or intermediary.


Centralising FX price discovery
"Let's say a corporate has gone through all the necessary steps... and now has a multibank panel at its disposal for FX execution.
Each counterparty might have different trade processes and systems to navigate, and so the corporate might have to make an additional investment... in an aggregator platform to centralise price discovery..."
Multibank FX platforms and fintech FX solutions - Eric Huttman, CEO of MillTechFX - The Treasurer online, October 2021.


See also