Electronic Trading in Stock Markets

@article{Stoll2006ElectronicTI,
  title={Electronic Trading in Stock Markets},
  author={Hans R. Stoll},
  journal={Economics of Networks},
  year={2006}
}
  • H. Stoll
  • Published 2006
  • Business
  • Economics of Networks
Modern trading technology clashes with the traditional organization of a stock exchange, where transactions were consummated via face-to-face negotiation. The modern trading facility is no longer a place. Rather, it is a computer system over which transactions are entered, routed, executed and cleared electronically with little or no human intervention. In this article, I examine how electronic trading has altered stock markets. I begin with an overview of how the stock trading process works… Expand
Evolution of Online Financial Trading Systems: E-Service Innovations in the Brokerage Sector
This chapter focuses on the theme of e-service innovation in financial electronic markets. The discussion will cover the theories of “technology bundling” and how bundling creates value-added inExpand
How Does the Internet Affect the Financial Market? An Equilibrium Model of Internet-Facilitated Feedback Trading
TLDR
The results show that these strategic, uninformed online traders who adopt feedback strategies cannot outperform those who do not follow feedback strategies and that feedback trading cannot affect market equilibrium. Expand
The Effect of Automation on Trading Volumes of Listed Companies at the Nairobi Securities Exchange, Kenya
Evidence from around the world indicates massive percentage of stock exchanges adapting electronic trading platforms and a prediction that this adapting trends will continue. Institutional investorsExpand
The Electronic Trading Systems and Bid-Ask Spreads in the Foreign Exchange Market
This paper examines the impact of electronic trading systems on the bid-ask spreads in the foreign exchange market. The paper finds: first, the EBS reduces spreads significantly; second, the EBS isExpand
Algorithmic Trading at Bucharest Stock Exchange
Very conservative estimates indicate that over 40% of transactions on the stock exchanges in the United States are based on automatically generated orders. Such systems are designed to do algorithmicExpand
Regulating High-frequency Trading: An Examination of European, US and Australian Equity Market Structures
Equity trading in the world is dramatically changing and at the same time raising doubts as to both its quality (liquidity, price efficiency and volatility) and its integrity; the change is mainlyExpand
Market quality and structural changes in the trading system
Purpose The purpose of this paper is to study the effect of X‐Stream, the new trading platform of the Colombian Stock Exchange since February 2009, on the market quality. Design/methodology/approachExpand
Market Quality and Structural Changes in the Trading System: The Case of X-Stream on the Colombian Stock Exchange
We study the effect of X-Stream, the new trading platform of the Colombian Stock Exchange since February 2009, on the quality of the stock market. Contributing to the literature on market quality,Expand
Bid-ask spreads, commissions and other costs
This chapter examines trading costs associated with buying and selling securities in organized exchanges such as the New York Stock Exchange. Costs are categorized as commission charges determined byExpand
Liquidity in Asset Markets with Search Frictions
We study how trading frictions in asset markets affect the distribution of asset holdings, asset prices, efficiency, and standard measures of liquidity. To this end, we analyze the equilibrium andExpand
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 19 REFERENCES
Trades Outside the Quotes: Reporting Delay, Trading Option, or Trade Size?
In the period 1993 through 2002 examined in this study, quoted and effective spreads declined substantially on Nasdaq and to a lesser degree on the NYSE. At the same time, however, trades outside theExpand
Dealer versus auction markets: A paired comparison of execution costs on NASDAQ and the NYSE
Execution costs for a sample of Nasdaq stocks significantly exceed those for a matched sample of NYSE stocks. Execution costs are measured by the quoted spread, the effective spread (which accountsExpand
The trades of NYSE floor brokers
Abstract This paper studies the contribution of NYSE floor brokers to the Exchange's agency auction market. Floor brokers represent 44%, specialists 11%, and system orders 45% of the value of allExpand
The Noise Trader Approach to Finance
I f the efficient markets hypothesis was a publicly traded security, its price would be enormously volatile. Following Samuelson's (1965) proof that stock prices should follow a random walk ifExpand
Order submission strategies, liquidity supply, and trading in pennies on the New York Stock Exchange
Abstract We use NYSE system order data to conduct a controlled experiment examining changes in trader behavior, displayed liquidity supply, and execution quality around the reduction in the minimumExpand
Why Did NASDAQ Market Makers Stop Avoiding Odd‐Eighth Quotes?
On May 26 and 27, 1994 several national newspapers reported the findings of Christie and Schultz (1994) who cannot reject the hypothesis that market makers of active NASDAQ stocks implicitly colludedExpand
Why Do NASDAQ Market Makers Avoid Odd-Eighth Quotes?
The NASDAQ multiple dealer market is designed to produce narrow bid-ask spreads through the competition for order flow among individual dealers. However, the authors find that odd-eighth quotes areExpand
Performance Characteristics of Emerging Capital Markets
Capital markets in developing countries have become an important asset class. These emerging markets are commonly associated with high returns, high volatility, and diversification benefits forExpand
Policy Watch: Did Nasdaq Market Makers Implicitly Collude?
This paper chronicles the research that led to the conclusion that Nasdaq marketmakers implicitly colluded to maintain supracompetitive spreads (Christie and Schultz, 1994). The paper provides aExpand
Reconsidering the Affirmative Obligation of Market Makers
Market makers on exchanges regulated by the U.S. SEC are subject to an affirmative obligation to make “fair and orderly markets,” and in return, they receive certain benefits. Financial economistsExpand
...
1
2
...