The research of bid-ask quotes on Russian cash-currency market

Abstract

Research goal: explain motives of bank managers’ in setting the size of the currency bid-ask spread on the cash-currency market. Research objectives: 1) Analyze the existing bid-ask spread models 2) Determine factors, that could influence managers' behavior 3) Russian Central Bank and commercial banks data collection and processing 4) State hypotheses about factors that influence decisions on setting bid-ask spread 5) Analysis of the results from theoretical and practical points of view Results: a model that suggests an explanation to the actions managers take to set currency quotes in Russian commercial banks was built. The difference between these actions during crisis and non-crisis periods was found.