Market Consistency and WMC [8]

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Bullet points include: Suppose a firm uses a demonstrably off-market price for unit pricing purposes. Firm has an asymmetric payoff. If unit price is demonstrably too high (or low) then buying clients (or selling clients) suffer and are likely to seek (or need to be given) compensation. All roads point to use of market prices, as long as they are readily observable. Or some reasonable interpretation of what the market price would be if a ready market existed, in cases where actual market prices are harder to observe

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