Interdealer systems

Interdealer systems allow dealers electronically to execute transactions with other dealers through the fully anonymous services of brokers brokers. A number of interdealer brokers have introduced or plan to introduce electronic transaction systems that will allow dealers anonymously to execute transactions in securities through proprietary net-... 

Intermediaries are usually reluctant to offer securities if they do not have them in inventory. Exceptions are highly liquid issues, where the dealer is confident he can obtain the bonds via the interdealer broker market. Generally, Eurobond dealers are more willing than their US counterparts to make short offerings, that is, to sell bonds they do not have in inventory. This mostly reflects the more competitive nature of the market—there are more dealers with smaller market shares than in the United States. But with the market s increased volatility short offerings are less common, and the US-style order system is becoming more prevalent. 

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