Effects of Market Reform on the Trading Costs and Depths of Nasdaq Stocks

  title={Effects of Market Reform on the Trading Costs and Depths of Nasdaq Stocks},
  author={M. Barclay and W. Christie and J. Harris and E. Kandel and P. Schultz},
  journal={Journal of Finance},
  • M. Barclay, W. Christie, +2 authors P. Schultz
  • Published 1999
  • Economics
  • Journal of Finance
  • The relative merits of dealer versus auction markets have been a subject of significant and sometimes contentious debate. On January 20, 1997, the Securities and Exchange Commission began implementing reforms that would permit the public to compete directly with Nasdaq dealers by submitting binding limit orders. Additionally, superior quotes placed by Nasdaq dealers in private trading venues began to be displayed in the Nasdaq market. We measure the impact of these new rules on various measures… CONTINUE READING
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