Redundancy of Centrality Measures in Financial Market Infrastructures

Autor o Editor
Martínez-Ventura, Constanza
Mariño-Martínez, Ricardo
Miguélez-Márquez, Javier

The series Borradores de Economía (Working Papers on Economics) contributes to the dissemination and promotion of the work by researchers from the institution. On multiple occasions, these works have been the result of collaborative work with individuals from other national or international institutions. This series is indexed at Research Papers in Economics (RePEc). The opinions contained in this document are the sole responsibility of the author and do not commit Banco de la República or its Board of Directors.

Fecha de publicación


The concept of centrality has been widely used to monitor systems with a network structure because it allows identifying their most influential participants.This monitoring task can be difficult if the number of system participants is considerably large or if the wide variety of centrality measures currently available produce non-coincident (or mixed) signals. This document uses principal component analysis to evaluate a set of centrality measures calculated for the financial institutions that participate in four financial market infrastructures of Colombia. The results obtained are used to construct general indices of centrality, using the strongest measures of centrality as inputs, and leaving aside those considered redundant.