Electronic Broker Research Articles

Exploring the impact of operating model choice on the governance of inter-organizational workflow: the U.S. e-prescribing network

Inter-organizational networks play an increasing role in delivering computer-mediated public services such as healthcare. Many networks govern through an infomediary (i.e., electronic broker) that brings together disparate member organizations. These networks can resemble an enterprise where standards and incentives for use are imposed on its partners. This study seeks to extend an enterprise IT governance (ITG) concept to the U.S. e-prescribing network as it transitions from a paper-based network to a computer-mediated one. The operating model, proposed by Ross et al (2006), emphasizes choices in standardization and integration to align strategy with operational processes to improve enterprise performance. Missing in their work is evidence that macro-level choices embedded in the operating model directly impact network workflow. A comparative synthesis traces the changes made to the U.S. e-prescribing operating model to their impact upon the roles and relationships among network members. Some workflow mis-alignments were traceable to the operating philosophy imposed by healthcare policy-makers. The study suggests IT alignment in networks may be better achieved through governing operating models rather than the traditional ITG focus on organizational forms.

The Role and Magnitude of Order Flows in Seoul Foreign Market

In this paper, we test the role of order flows in KRW/USD. We use transaction based high frequency data (electronic broker) happened in 2006. For robustness check, we extend our analysis by combining exchange rates (indicative quotes v.s. transaction rate), frequency (transaction based time v.s. 1 minute through 1 day), and order flows (sign v.s. signed volume). The results show that order flow is an important variable for explaining the KRW/USD regardless of frequency and of choice of quotes. Based on Hasbrouck's measure we find that 14-28% of permanent exchange rate variation is due to private information. The magnitude is smaller than that of international currency presenting, for example, in Payne (2003). The discrepancy arises both from currency choice and from too short data span in Payne (2003).

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Korean Abstract: 본 연구는 서울외환시장을 대상으로 주문흐름이 환율에 영향을 미치는지를 실증분석한다. 환율의 선택(거래가 대 예시호가), 달력주기(거래시점별 자료, 1분, 2분, 5분, 30분,1시간, 1일), 주문흐름(매매수도 부호 대 부호거래량)의 선택이 주문흐름의 설명력에 차이가 있는지를 분석한다. 분석 결과, 주문흐름은 공히 환율에 통계적으로 유의한 영향을 미치는 것으로 나타났다. 매매수도 부호보다는 부호화된 거래량이 더 적절한 지표로 판단된다. 예시호가와 실거래가의 선택은 적절한 분석 주기 선택 시 큰 차이가 없는 것으로 판단된다. 달력주기에서는 30분과 1시간 빈도가 적절한 것으로 분석되었다. 주문 흐름의 원/달러 환율에 대한 설명력은 선진국보다 작게 나타났는데, 이는 통화와 표본기간의 차이에서 비롯된 것으로 판단된다. English Abstract: In this paper, we test the role of order flows in KRW/USD. We use transaction based high frequency data (electronic broker) happened in 2006. For robustness check, we extend our analysis by combining exchange rates (indicative quotes v.s. transaction rate), frequency (transaction based time v.s. 1 minute through 1 day), and order flows (sign v.s. signed volume). The results show that order flow is an important variable for explaining the KRW/USD regardless of frequency and of choice of quotes. Based on Hasbrouck's measure we find that 14-28% of permanent exchange rate variation is due to private information. The magnitude is smaller than that of international currency presenting, for example, in Payne (2003). The discrepancy arises both from currency choice and from too short data span in Payne (2003).

Global markets as global conversations

AbstractFinancial markets are one of the most iconic and influential structures of our time. The foreign exchange market in particular is also the most genuinely global market—and the largest market worldwide, with an average daily turnover of 1.8 trillion US dollars. The foreign exchange market is also structurally like a massive conversational interaction system; many of its transactions are conducted through electronically mediated ‘conversations’. Transactions not conducted through conversations but through an electronic broker also display a sequential turn-taking structure. In this paper, I analyze the streaming ‘flow’ architecture of this market in terms of its sequential structures and their technological and economic aspects. I also specify and analyze several types of texted sequences that articulate and illustrate the response-based interaction system of this market. I argue that informational sequences are particularly important; the informational liquidity of this market sustains and supports the market's economic liquidity.

An External Broker Interface Based on Existing Trading Protocols

This paper presents an approach to the specification of external interfaces of an electronic broker used in the Architecture for Electronic Brokerage Systems (AEBS). The external interface specifie...

Electronic Broker Impacts on the Value of Postponement in a Global Supply Chain

Global and electronic markets are increasingly forcing manufacturing enterprises to become more competitive. As a result, many manufacturing enterprises are seeking to manage their supply chains more effectively. Product differentiation timing is one important factor in supply chain management. Under an early product differentiation process, finished products are manufactured and stored in a distribution center until delivery. Under a delayed product differentiation process, partially completed product components are manufactured and stored in a distribution center; later, based on demand information, finished products are completed from the product components. The difference in value between early product differentiation and delayed product differentiation is the value of postponement. Prior research has analytically shown that the value of postponement is affected by information precision in demand forecasts. In this article, we investigate whether adding a market-making electronic broker to a supply chain increases the value of postponement. We hypothesize that it may do so by providing greater accuracy in demand forecasting. We test this relationship by comparing the results of agent-based simulations that vary between early and late differentiation strategies and the use of an electronic broker. In each simulation, the effects of demand correlation, demand variability, and demand pooling are considered. The simulations show that an electronic broker increases inventory cost savings (compared to a non-broker) and increases the value of postponement in the face of increasing demand variability, increasing demand pooling, and decreasing demand correlation. Moreover, an electronic broker may, through its own actions, increase demand variability and demand pooling, while decreasing demand correlation, thereby creating the environment in which is best operates.

FX Trading... LIVE! Dealer Behavior and Trading Systems in Foreign Exchange Markets

The introduction of electronic broker systems in the foreign exchange (FX) market at the end of 1992 changed the structure of the market and opened new channels for trading. We study the impact of these systems on dealer behavior, using a unique data set on the complete transactions of four FX dealers. We find some support for an information effect in incoming trades conducted directly (bilaterally). For trades executed by electronic broker systems we find no information effects, but we find that sequences of trades in cumulative flow may be infomative for prices. The new electronic systems have changed how dealers control their inventories by introducing new channels for this purpose. Dealers use outgoing trades on electronic brokers to control inventory. Comparing our results to previous research indicates that the introduction of electronic brokers have changed the behavior of dealers.

AN ELECTRONIC BROKER FOR BUSINESS-TO-BUSINESS ELECTRONIC COMMERCE ON THE INTERNET

Distributed object standards provide a key to building interoperable applications that can run on a range of platforms. The paper describes a CORBA-based research prototype for an electronic broker in business-to-business electronic commerce. High-level IDL specifications are used to achieve interoperability between components of the electronic marketplace. The two key functionalities of the electronic broker are the ability to dynamically gather information from remote electronic catalogs and the support for negotiations through auction mechanisms. The paper discusses the functionality and the design of the electronic broker and gives an overview of current extensions of the prototype. As application-level interoperability is a crucial precondition for many brokerage services, we put special emphasis on electronic commerce protocol standards.

Services of a Broker in Electronic Commerce Transactions

Current Web-based electronic commerce systems are lacking in efficient electronic brokerage. However, brokerage plays an important role in many electronic commerce transactions. Over the past few years significant research has been done in the area of electronoc commerce, based on distributed object technology. Ditributed object systems provide a key to building interoperable applications that can execute on a range of platforms. This new generation of electronic commerce systems is still in its early stages. This paper discusses the design and implementation of a CORBA-based electronic broker. The electronic broker is part of a research project called OFFER, which is trying to establish an object framework for business-to-business electronic catalogs and it provides a centralized marketplace with the possibility to use auction mechanisms to buy or sell goods.