The Post-Reform Bid-Ask Spread Disparity between Nasdaq and the Nyse
We report further evidence of the difference in execution costs between Nasdaq and the NYSE before and after the 1997 market reforms. We find that informed trading costs are consistently higher on Nasdaq both before and after the reforms. In the pre-reform period the Nasdaq-NYSE disparity in bid-ask...
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2003
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sg-smu-ink.lkcsb_research-17922010-09-23T06:24:04Z The Post-Reform Bid-Ask Spread Disparity between Nasdaq and the Nyse WU, Chunchi He, Yan We report further evidence of the difference in execution costs between Nasdaq and the NYSE before and after the 1997 market reforms. We find that informed trading costs are consistently higher on Nasdaq both before and after the reforms. In the pre-reform period the Nasdaq-NYSE disparity in bid-ask spreads cannot be completely attributed to the difference in informed trading costs. However, in the post-reform period the spread difference between these two markets becomes insignificant with the effect of informed trading costs controlled. Our findings are consistent with the contention that the reforms have largely reduced noninformation trading costs and dealers' rents. 2003-01-01T08:00:00Z text https://ink.library.smu.edu.sg/lkcsb_research/793 info:doi/10.1111/1475-6803.00055 Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Business |
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Business WU, Chunchi He, Yan The Post-Reform Bid-Ask Spread Disparity between Nasdaq and the Nyse |
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We report further evidence of the difference in execution costs between Nasdaq and the NYSE before and after the 1997 market reforms. We find that informed trading costs are consistently higher on Nasdaq both before and after the reforms. In the pre-reform period the Nasdaq-NYSE disparity in bid-ask spreads cannot be completely attributed to the difference in informed trading costs. However, in the post-reform period the spread difference between these two markets becomes insignificant with the effect of informed trading costs controlled. Our findings are consistent with the contention that the reforms have largely reduced noninformation trading costs and dealers' rents. |
| format |
text |
| author |
WU, Chunchi He, Yan |
| author_facet |
WU, Chunchi He, Yan |
| author_sort |
WU, Chunchi |
| title |
The Post-Reform Bid-Ask Spread Disparity between Nasdaq and the Nyse |
| title_short |
The Post-Reform Bid-Ask Spread Disparity between Nasdaq and the Nyse |
| title_full |
The Post-Reform Bid-Ask Spread Disparity between Nasdaq and the Nyse |
| title_fullStr |
The Post-Reform Bid-Ask Spread Disparity between Nasdaq and the Nyse |
| title_full_unstemmed |
The Post-Reform Bid-Ask Spread Disparity between Nasdaq and the Nyse |
| title_sort |
post-reform bid-ask spread disparity between nasdaq and the nyse |
| publisher |
Institutional Knowledge at Singapore Management University |
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2003 |
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https://ink.library.smu.edu.sg/lkcsb_research/793 |
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