Asymmetric information and price discovery in the FX market: does Tokyo know more about the yen?

Asymmetric information, price discovery

Asymmetric information, price discovery and macroeconomic announcements in FX market: do top trading banks know more?

✍ Kate Phylaktis; Long Chen 📂 Article 📅 2009 🏛 John Wiley and Sons 🌐 English ⚖ 247 KB

## Abstract This study investigates information asymmetry in the foreign exchange market by testing the hypothesis that top trading banks possess superior information on the macroeconomy because they process greater order flow, which, according to the micro‐structure literature, helps them aggregat