Effects of market reform on the trading costs and depths of Nasdaq stocks

Article Abstract:

Research into the impact of reforms allowing ordinary investors to compete directly with Nasdaq dealers by submitting binding limit orders indicates that quoted and effective spreads have narrowed by around 30% as a result. The most significant benefits have been felt by investors in stocks in quite wide spreads before the implementation of the new Securities and Exchange Commission regulations. The considerably higher trading costs among Nasdaq issues have therefore been largely eliminated. The Nasdaq market is still liquid, even though the trading costs to investors have been cut.

Laws, regulations and rules, Stocks, NASDAQ Market System

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The dynamics of institutional and individual trading

Article Abstract:

An analysis is presented of patterns in Nasdaq 100 securities trading involving stock returns and individual and institutional investors. Findings show that pronounced contemporaneous patterns occurring daily can be attributed primarily to net trading by individuals or institutions negatively or positively following previous intradaily excess stock returns.

Securities trading, Nasdaq 100 Index (Index)

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The behavior of bid-ask spreads and volume in options markets during the competition for listings in 1999

Article Abstract:

Research indicates that quoted and effective bid-ask spreads decrease significantly after multiple listings and generally maintain initial lower levels a year later. Findings are robust and hold for both pooled regressions and time series.

Options (Finance)

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