Corpus ID: 39073438

American Finance Association Location Matters : An Examination of Trading Profits

  title={American Finance Association Location Matters : An Examination of Trading Profits},
  author={H. Hau},
  • H. Hau
  • Published 2001
  • The electronic trading system Xetra of the German Security Exchange provides a unique data source on the equity trades of 756 professional traders located in 23 different cities and eight European countries. We explore informational asymmetries across the trader population: Traders located outside Germany in non-Germanspeaking cities show lower proprietary trading profit. Their underperformance is not only statistically significant, it is also of economically significant magnitude and occurs… CONTINUE READING
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