A multi-layered network of the (Colombian) sovereign securities market

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5 Citations (Scopus)

Abstract

We study the network of Colombian sovereign securities settlements. With data from the settlement market infrastructure we study financial institutions’ transactions from three different trading and registering individual networks that we combine into a multi-layer network. Examining this network of networks enables us to confirm that (i) studying isolated single-layer trading and registering networks yields a misleading perspective on the relations between and risks induced by participating financial institutions; (ii) a multi-layer approach produces a connective structure consistent with most real-world networks (e.g. sparse, inhomogeneous, and clustered); and (iii) the multi-layer network is a multiplex that preserves the main connective features of its constituent layers due to positively correlated multiplexity. The results highlight the importance of mapping and understanding how financial institutions relate to each other across multiple financial environments, and the value of financial market infrastructures as sources of data that may help to overcome the main obstacles for working on multi-layer financial networks.
Original languageEnglish
Title of host publicationAnalyzing the Economics of Financial Market Infrastructures
Subtitle of host publicationAdvances in Finance, Accounting and Economics
EditorsBilana Alexandrova-Kabadjova, Martin Diehl, Richard Heuver, Serafín Martinez-Jaramillo
Place of PublicationHershey
PublisherIGI Global
Pages124-149
Number of pages25
ISBN (Print)9781466687455
DOIs
Publication statusPublished - 2015

Publication series

NameAFAE Book Series
PublisherIGI Global

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  • Cite this

    Renneboog, L., Leon Rincon, C., & Pérez, J. (2015). A multi-layered network of the (Colombian) sovereign securities market. In B. Alexandrova-Kabadjova, M. Diehl, R. Heuver, & S. Martinez-Jaramillo (Eds.), Analyzing the Economics of Financial Market Infrastructures: Advances in Finance, Accounting and Economics (pp. 124-149). (AFAE Book Series). IGI Global. https://doi.org/10.4018/978-1-4666-8745-5.ch007