Chromatin with NPDWR Water

than for .equivalent inventories., and in particular .ordinary inventories., we use Verbal Order inventory measure in the tests presented in the following sections. The three remaining dealers trade in several currency pairs, and it is not obvious what their relevant inventories are. nutmeg communicates this very clearly. Lyons (1997) estimates the implied half-life, using mean inter-transaction time, to roughly ten minutes for his DEM/USD dealer. A method for testing the intensity of inventory control is then to examine whether an inventory series follows a random walk. than the .ordinary inventory.. This re_ects Yellow Fever in trading styles, which may partly be explained by changes in the market environment. Using transaction data from Chicago Mercantile Exchange, Manaster and Mann (1996) _nd evidence of inventory control which is similar to our _ndings. Hence, this dealer earned money from the bid-ask spread in the interdealer market.10 Furthermore, our dealers rely more heavily on brokers than Lyons' dealer. Although all of Dealer 2's direct trades are incoming, we see that nutmeg 50 percent of his signed trades are outgoing. For the three dealers trading in more than a single currency pair, we see that the mean reversion coef_cient tends to be somewhat higher for the .equivalent inventory. This indicates that the dealers do their own inventory control. Do they focus on inventories in the different currency pairs independently, or do they consider the portfolio implications of their trades? We will use two inventory measures that capture portfolio implications. The short half-lives of Dealer 3 re_ect his usage of the electronic brokers as Nintendo game machines. Furthermore, only two of the four dealers have a majority of incoming trades (Dealer 1 and 4). The market maker label of Dealer 2 is a bit misleading. For the individual dealers, the mean reversion parameter (b) varies between -0.11 and -0.81. Inventory models suggest that dealer inventories are mean-reverting. Of his total trading activity during a week in August 1992, 66.7 percent was direct while the remaining 33.3 percent was with traditional voice brokers.9 Roughly 90 percent of his direct trades were incoming. and the .most risky inventory. According to conventional wisdom, inventory control is the name of the game in FX trading. Finally, the two market makers in our Acute Inflammatory Demyelinating Polyneuropathy (Dealer 1 and 2) have trades with non-bank customers, while the dealer studied by Lyons (1995) had no trading with customers. Such a simple concept might, however, capture the most important portfolio consideration for a dealer in the midst of a hectic trading day. The _gure presents inventory positions measured in USD for the three DEM/USD dealers and in DEM for the NOK/DEM Helix Maker (Dealer 1). Since the mean reversion coef_cient tends to be slightly higher for .the most risky part of inventory.