Fig. 6.

Transaction costs: customer-to-customer (C-to-C) versus customer-to-dealer (C-to-D).

This figure presents daily average transaction costs for C-to-C trades and C-to-D trades. Transaction cost is calculated for each customer trade using Eq. (1). For each of the two types of trades, the transaction-level estimates are averaged across trades and bonds within the day to obtain daily estimates. As C-to-C trades are double-counted in the data, we use only one record for each C-to-C trade in our sample. PDCF = Primary Dealer Credit Facility; SMCCF = Secondary Market Corporate Credit Facility.