Thus, in equilibrium, connected peripheral dealers who did not trade with other peripheraldealers transfer their aggregate inventory to core dealers at price pco∗. In this sense, coredealers provide liquidity to peripheral dealers. Henceforth, we refer to ∆ as the orderflow (or order imbalance) from peripheral dealers in the core market (this is the differ-ence between sell and buy orders from connected peripheral dealers in the core market).Combining equations (8) and (11), we obtain the following result.